(Bloomberg) --
Grocery price increases in the U.K. aren’t yet denting shoppers’ festive spirit, according to data company Kantar.
Christmas dinner staples are becoming pricier as grocery inflation reached 3.2% in the past month, the highest rate since June 2020. Still, Kantar said it has not noticed a shift in consumer habits yet, such as swapping branded products for own label, and seeking out promotions.
“Price inflation doesn’t seem to be denting their desire to treat themselves and loved ones,” Fraser McKevitt, head of retail and consumer insight at Kantar, said in a statement. “Supermarket premium own-label ranges, such as Tesco Finest and Asda Extra Special, are the fastest-growing ranges.”
Grocers have been prepping for Christmas amid a backdrop of wider supply-chain challenges and driver shortages in the U.K., with J Sainsbury Plc attempting to reassure customers that there will be “plenty of food,” or at least alternatives if some products are missing.
The emergence of the omicron coronavirus variant poses another uncertainty for consumer behavior. Online grocery sales dropped in the four weeks to late November, comparing against the slew of orders made last year during lockdown, but Kantar expects there could be an online resurgence, as some consumers opt to shop online again and limit store visits.
©2021 Bloomberg L.P.
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