UK Grocers - comment
Kantar-related headlines yesterday focused on the 14% price inflation, and although December was the 2nd month that grocery price inflation has fallen, it still remains at 14%+ levels. Perhaps more important, Sainsbury have announced bringing forward their annual pay review and pushing supermarket pay to £11 an hour (and £11.95 for London-based staff). This move will cost an additional £185m (c. 5% increase in wage bill) for a full financial year. Consumers continue to trade down, with own-label product sales rising 13% versus 4.7% for branded lines.
On name specific, Iceland had a bumper Christmas sales period, with toppling growing 10%, pushing their market share to 2.5%. This was achieved via frozen poultry and frozen prepared foods, both enjoying healthy increases. Despite sales falling 2.9%, Morrisons had its best performance since June 2021.