Grocery price inflation in the United Kingdom has eased to 4 per cent in January, marking its lowest level since April and offering a welcome respite for households grappling with cost-of-living pressures. This decline signals a shift in consumer behaviour as shoppers increasingly seek out bargains and value-driven options in their weekly shops.
Record Surge in Own-Label and Promotional Spending
Supermarket own-label goods have surged to a record 52.2 per cent of all grocery sales, underscoring a pronounced consumer focus on affordability. This trend reflects a strategic move by shoppers to stretch their budgets further amid ongoing economic uncertainties.
Spending on promotional items has seen a significant uptick, growing by 10.9 per cent year-on-year. This represents the fastest growth in this category since October 2024, highlighting how consumers are actively hunting for discounts and special offers to manage their expenses.
Health and Wellness Take Centre Stage
Alongside the pursuit of value, UK shoppers have demonstrated a strong interest in health and wellness. Sales of high-protein and high-fibre products have increased, alongside notable rises in cottage cheese and functional drinks. This indicates a growing consumer awareness of nutritional benefits, even as they navigate tighter budgets.
Retailer Performance: Winners and Losers
Lidl emerged as the fastest-growing bricks-and-mortar retailer, with sales up by 10.1 per cent, capitalising on its reputation for low prices. Online retailer Ocado also experienced significant growth, benefiting from the convenience of home delivery.
In contrast, Asda and Co-op faced sales declines, suggesting challenges in adapting to the evolving market dynamics where value and health-conscious choices are paramount.
Overall, the easing of grocery inflation to 4 per cent is reshaping shopping habits across the UK, with a clear emphasis on smart spending and healthier lifestyles.
