Thursday, 30 November 2017
In the midst of the recession that followed the 2008 banking crisis, many shoppers welcomed the disrupting influence of Hard Discounter supermarkets. The price-cutting response of established big retailers was also well-received, fierce competition for market share led to a period of declining grocery prices stretching back to September 2014, according to Kantar Worldpanel. But in January this year, prices began to grow and like-for-like grocery price inflation now stands at 3.2 per cent (Kantar Worldpanel, 12 w/e 5 November 2017).
Rising prices are not solely due to currency changes. AHDB Consumer Insight articles show that there is a new emphasis on creating a premium product and image, with a higher price, in the fast-growing frozen food category. AHDB also describe how the dairy sector has been hit by falling production, a shortage of fats and rising demand connected to changing consumer attitudes.