Inflation is at a 10 year low for staple foods, according to Kantar World panel, showing the continued effect the supermarket price war is having on the economy.
Grocery sales from the supermarkets grew by only 0.8% in the 12 weeks ending in August, compared to the same time last year.
The inflation on staple goods has been driven down to a record low of 0.2% for the time of year.
But most of all, despite the great efforts by the big supermarket chains to stamp down prices and gain back market share, the discounters have continued to grow.
Aldi’s market share rose by 4.8% from 3.7% in the last year, and Lidl’s climbed from 3.1% to 3.6%. In addition, Lidl also released a clothing range to oppose the likes of George.
Tesco’s market shars now stand at 28.8%, from 30,2% a year ago.
Kantar Worldpanel director, Edward Garner, said: “Competitive pricing among the big grocers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation down yet again.”
The great efforts that the big four supermarkets went to, and the risks they took have not, according to these figures, put off the encroachment of the discounters into the market.
Even Waitrose, as a premium store, has seen boosted figures, increasing sales by 3.6%.
The main supermarkets may need to do something more spectacular than just lowering prices to combat the discounters which simply offer much better value.
