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UPDATE 1-UK grocery prices jump 2.3 percent in 12 weeks to March 26
April 4, 2017 / 9:57 AM / 7 months ago

UPDATE 1-UK grocery prices jump 2.3 percent in 12 weeks to March 26

 (Adds details, quote)
    LONDON, April 4 (Reuters) - British grocery prices jumped
2.3 percent year-on-year in the 12 weeks to March 26, as the
plunge in the pound following last year's Brexit vote forced
higher the cost of staples including butter, fish, tea and
skincare.
    Market researcher Kantar Worldpanel said the latest increase
was up from the 1.4 percent rise recorded in the 12 weeks to
Feb. 26.
    Food prices started to edge up in Britain in the final three
months of 2016, ending more than two years of falling costs. 
    "Inflation shows no signs of abating," said Fraser McKevitt,
head of retail and consumer insight at Kantar Worldpanel.
    Rising prices cost the average household an additional 21.31
pounds ($26.52) during the past 12 weeks, McKevitt said.
    "We expect inflation to continue to accelerate, and as a
result we're likely to see consumers looking for cheaper
alternatives."  
    Britain's vote last June to leave the European Union caused
the pound to slide, pushing up the price of imports, while
prices of certain key commodities have also risen.
    The British Retail Consortium has said shoppers are cutting
back non-essential spending to counter higher food costs,
showing the pressures starting to build on consumers who helped
the economy withstand the Brexit shock in the initial
months.  
    Kantar data also showed most of the big supermarkets
struggling in the period, as Easter falls later this year and
outside the latest 12-week timeframe. 
    Sales at market leader Tesco were down 0.4 percent,
Sainsbury's fell by 0.7 percent, Asda dropped
1.8 percent and Morrisons edged 0.3 percent higher.
    Discount retailers Aldi and Lidl reached record-high market
shares, with Lidl the fastest-growing retailer on a 15 percent
sales boost and Aldi increasing sales by 14.3 percent. Overall,
the grocer market increased by 1.4 percent.  
    
    
    Market share and sales (percent) - Kantar Worldpanel
                  12 wks to     12 wks to     pct change
                  26 Mar, 2017  27 Mar, 2016  in sales
 Tesco            27.6          28.1          -0.4
 Sainsbury's      16.1          16.4          -0.7
 Asda             15.7          16.2          -1.8
 Morrisons        10.4          10.5          0.3
 Aldi             6.8           6.0           14.3
 Co-operative     6.1           6.1           0.8
 Waitrose         5.1           5.1           0.3
 Lidl             4.9           4.4           15.0
 Iceland          2.2           2.0           9.8
                                              
 


($1 = 0.8037 pounds)

 (Reporting by Kate Holton; Editing by David Clarke and Dale
Hudson)
  

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