Brits Reduce Food Spending Following Inflation

Brits Reduce Food Spending Following Inflation

During the Christmas period, the British public collectively spent a large amount of money on indulgent food. Following this splurge, January spending is a complete contrast. The average household spent £1.6bn less on food in January compared to December. Cut-price retailers like Aldi and Lidl increased in popularity as food-price inflation stayed at a four-year high at 3.6%.

Mindful About Health and Money

Along with being more aware of their spending, Brits are also much more health-conscious with their food purchases; with many choosing meat-free meals and purchasing more fresh produce.

Both Aldi and Lidl increased their sales by 16% compared to the Christmas period of 2017. Online grocer Ocado have maintained an 8% growth each year whilst other retailers struggled to achieve a 3% sales increase over the period. Overall, grocery sales increased in value by 3.4% each year, behind the rate of inflation.

Tesco remained at the top of the table of the UK’s largest four supermarkets. Sales increased by 2.6%, ahead of ASDA, Morrisons and Sainsbury’s who achieved 2.5% increase.

Cheaper Retailers Experience Sales Boom

Nevertheless, the British public are actively choosing the cheaper retailers. This is most likely due to consumers spending much of their income during the Christmas period. As a result, a concerted effort is being made to save money where possible.

What is proving most popular with the cheaper retailers are their branded goods and premium ranges. Despite the focus on own-label lines, Lidl has witness the fastest growth in their branded products. A yearly increase in sales by 30% has meant that branded products make up around an eight of sales.

Although the British public are trying to save money and make healthier choices currently, they still value favoured brands and luxury products. When these items are available at discounted rate, it is understandable why they are so popular.



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