By Michael Susin


U.K. grocery inflation ticked up slightly in October, with supermarket sales reaching record highs as shoppers prepared for Christmas, according to the latest report from research firm Kantar.

Annual grocery inflation increased to 2.3% for the four weeks to Nov. 3 from 2% recorded in the month prior.

The increase is still within typical levels, Fraser McKevitt, Kantar's head of retail and consumer insight, said.

October was the busiest month for grocers since March 2020 when consumers swarmed stores to prepare for the first national lockdown during the coronavirus pandemic. Christmas shopping started early, with 14% of households picking up mince pies and more than half a million Christmas cakes already sold. Sales of chocolate and other sweets also rose.

"What's interesting this month is the number of households who are already stocking up the cupboards for the big day in December," McKevitt said.

Shoppers are also benefiting from intense promotional activity, which is keeping prices down and supporting sales of branded goods in particular. These deals have been increasing consistently over the past 18 months and now make up nearly one third of all sales, McKevitt added.

Sales growth of branded and own-label products reached the biggest gap since February 2021 at 4.9% and 2.7%, respectively.

"We'll be keeping a close eye on those numbers to see whether the gap continues to widen in the run up to Christmas," McKevitt said.

Among the top performers, online grocer Ocado showed the biggest sales increase at 9.5% over the 12 weeks to Nov. 3.

German discounter Lidl was the fastest growing retailer with a bricks and mortar presence for the 15th period in a row, the report said.

The two largest supermarkets in Great Britain also outperformed the wider market. Tesco's sales rose 4.6%, taking its market share to roughly 28%, and Sainsbury's sales grew 4.4%, taking its overall market share to 15.5%.


Write to Michael Susin at michael.susin@wsj.com


(END) Dow Jones Newswires

11-12-24 0544ET