LONDON (ShareCast) - (Sharecast News) - Grocery price inflation edged lower in August but still remains significantly elevated, according to data from market research firm Worldpanel on Tuesday, with consumers adapting their shopping behaviour as the cost of living continues to rise.
The year-on-year change in grocery prices slowed to 5.0% over the four weeks to 10 August, down from 5.2% in July, while take-home sales at supermarkets were 4.0% higher than last year.

Despite the slight easing of inflation, Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "We're still well past the point at which price rises really start to bite and consumers are continuing to adapt their behaviour to make ends meet."

He said that casual and fast-service restaurants have borne the brunt of the change in consumption patterns, with visitor trips to such establishments down 6% in the three months to mid-July when compared with last year.

However, coffee shops were the one category that has bucked this trend.

Worldpanel reported that as consumers are seeking savings outside the home, they are increasingly swapping meals out for "little treats at home", with sales of branded grocery items up 6.1%, compared with a 4.1% increase in cheaper, own-label alternatives.

In terms of supermarkets, market leader Tesco saw a healthy increase in sales over the 12 weeks to 10 August, with total till roll up 7.4% on last year at £10.15bn, equating to a 28.4% market share.

However, it was Lidl and Ocado that were the fastest-growing grocers over the period, with sales up 10.7% at each retailer at £2.95bn and £683m, representing market shares of 8.3% and 1.9%, respectively.

Asda remains the third biggest player in the market, with a market share of 11.8%, though sales were 2.6% lower at £4.22bn.

Meanwhile, the Co-op was the only other grocery to see a fall in sales, down 3.2% at £1.92bn, giving it a market share of 5.4%.

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