News and Trends

 Source: https://brc.org.uk/news-and-events/news/corporate-affairs/2026/ungated/shop-price-inflation-reaches-two-year-high/ Period Covered: 01 – 07 August 2026 Helen Dickinson, Chief Executive of the BRC, said: “Shop price inflation rose to its highest level in over two years, albeit well below the headline Consumer Price Index.  The impact of higher energy, input and commodity costs is beginning to filter through into prices, particularly for ambient foods which are typically imported and processed. In non-food, electrical prices rose amid the ongoing AI boom, which is forcing up the price of memory chips and storage.  Meanwhile, retailers kept clothing prices low to offer value for families getting ready for the new school year.”“The months ahead look challenging for households, with rising bills putting further pressure on budgets.  Retailers are facing persistently high operating costs, limiting their ability to absorb further increases without impacting inv...

Source: https://www.mayinsight.co.uk/post/grocery-insights-2026   As things ramp up again, here are 10 grocery insights already shaping 2026, the shifts that are gaining momentum now and will matter most over the next 12 months and beyond. 1. Retailers are reshaping the definition of value 💷 Inflation pressure has eased, but household costs remain elevated, keeping value a priority even as confidence improves. Retailers now embed value through own label tiers, loyalty pricing and deal mechanics, not just shelf price. Brands must fit the retailer’s value architecture or risk looking poor value, even when competitively priced. 2. Aldi & Lidl set the grocery benchmark 🛒 Aldi and Lidl are no longer secondary shops. They are now main-shop credible retailers for a large majority of UK households. Their scale puts real pressure on traditional big four supermarkets, not just on price but on quality, range and execution. Store expansion and rising shopping frequency mean Aldi ...

 

Tesco' s sales growth accelerating, and Asda 's market share falling below 12% for the first time are the headlines from Worldpanel by Kantar's UK market data for 12 weeks ending 15th June 2025 released earlier today. 12-week sales grew by 5.0%, up from 4.2% in the last period. In the last 4 weeks grocery inflation was 4.7%, up from 4.1% the previous 4 weeks. Kantar report that grocery volumes fell by 0.4%, a lower level than overall UK retail sales volumes which have dropped by 2.7% in May according to the Office for National Statistics (ONS). The UK consumer is making an average of 17 trips to supermarkets in the latest month, the highest figure since March 2020. However, the average spend per trip is down 3p YoY, now at £23.89. Deals are certainly being sought after, with spend on promotion up to 28.8%. private label sales are up 4.2%, slightly ahead of brands. Tesco ’s growth has accelerated to 2.0% ahead of the total market (from 1.7% in the last period).. They ...

 Source: Grocery Insights, Steve Dresser - 24/06/2025 It's a definite step change in the market with volumes falling, customers making more shopping trips and inflation touching 5%. Customers react to this, and the sentiment has been weak for some time. The recent NI changes have not been swallowed by the sector (my shock!) but instead are being passed on to customers. For people heavy sectors like hospitality, retail and food production, any cost increase is bad news but the NI changes feel like a spectacular own goal that is only going to hurt the average UK customer. Convenience stands to benefit; with customers making more shopping trips, little and often, to minimise food waste and maximise budgets. What's interesting with the Kantar set is that Asda are starting to recover, this is despite them deflating themselves. IE sales value is reported by Kantar and Asda were only -1.7% for the 12 weeks to 15 June. SKU...