Kantar said that despite the easing of food price rises, shoppers were still following money-saving habits.
“Typically, an inflation rate of around 3% is when we start to see marked changes in consumers’ behaviour, with shoppers trading down to cheaper items when the rate goes above this line and vice versa when the rate drops,” said Fraser McKevitt, head of retail and consumer insight at Kantar.
“However, after nearly two and a half years of rapidly rising prices, it could take a bit longer for shoppers to unwind the habits they have learnt to help them manage the cost of living crisis.
“Own-label lines are proving resilient, for example, and they are still growing faster than brands, making up over half (52%) of total spending.”
Sales of premium own-label ranges remained popular, up by 9.9% from a year earlier.
Kantar also said it expected summer sports events such as the Euro 2024 men’s football tournament and the Olympic Games to boost sales, especially alcoholic drinks.
“During England’s quarter final match against France in the 2022 FIFA Men’s World Cup, take-home beer sales hit their biggest daily takings of the year outside of Christmas,” Mr McKevitt said.
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