Grocery prices are always big news. For instance, in February, a self-serve pilot scheme in a Solihull Aldi met its end. The trial let customers refill packages, reducing plastic waste and letting shoppers save up to 5%. Similarly, Birmingham Live reported in early March that Sainsbury’s was the cheapest non-budget supermarket.
These insights and schemes shine a light on Brits’ shopping behaviour. In the first part of the year, Sainsbury’s leaned heavily on promotions to attract customers. This practice crosses retail divides – offers are a regular aid to marketing, regardless of the industry. Sainsbury’s Nectar and Tesco’s Clubcard are the obvious examples.
However, one marketing technique that has dwindled in supermarkets over the last decade are free samples. ‘Tasters’ or free samples entice shoppers into a trying out a service they might otherwise miss out on. Amazon Music currently offers 30 days free, for instance. Similarly, the latest casino Betfair offers include fifty free turns on the Crabbin’ For Cash slot. As grocery prices rise, supermarkets in Solihull and beyond could adopt a similar free sample approach to entertainment industries, to stand out amongst fierce competitors and give back to customers.
Specific to big supermarket brands, incentives such as free samples of the companies own brand products could be a good idea on how to promote the supermarkets, showcasing to customers how more affordable, own brand options can be just as good as the more popular and famous brands.
Supermarket Inflation
Research from Kantar revealed items on special offer represented 27.6% of Brits’ spending in February compared to the same time last year, a rise of 0.3%. Overall, though, visits to supermarkets are in a five-year slump, equal to one less trip a week.
Kantar, a market research company, also discovered that we’re far less adventurous in our cooking, using fewer ingredients. This may have shifted the popularity of on-sale products, as people seek the convenience of ready meals. Oddly enough, incidences of snacking fell across the country.
Supermarket inflation, i.e. how much prices increase or decrease year after year, is a closely-watched metric. It lets economists know the cost of living in the UK.
An analysis by Which? for two years to the end of 2024 revealed that food inflation began at 5% in March 2022. It experienced a huge hike to 17% by early 2023, only to drop consistently to around 2% by August 2024. Unfortunately, things hit a sour note after that. The final date on Which?’s graph of 23,000+ supermarket products showed a 1% inflation rise.
Supermarket inflation is complex because each product exists in isolation. For example, while butter fell 25%-35% in price during 2024, orange juice and biscuit costs grew. Our hero from earlier, Sainsbury’s, increased orange juice prices by up to 76% as part of a trend that touched all retailers in the UK. Meat and confectionary were also at the mercy of rapid inflationary changes.
The Price of Essentials
The last few years have produced an unpredictable set of grocery prices. Historically, the price of essentials has not mirrored inflation. Using meat as an example, the Office for National Statistics notes that beef or chicken prices have been up to 50% lower than inflation. Fish often rode higher than inflation.
Put another way, some things on the supermarket shelves are only loosely controlled by inflation. In the UK, inflation is represented by the Consumer Price Index or CPI.
Overall, supermarket inflation might seem like a dark art in this strange decade. Yet there’s always an occasional light in the tunnel.
