Grocery price inflation slowed again in June, reaching 3% compared to the same month last year, down from 3.1% in May and 3.8% in April, according to data from Worldpanel by Numerator. The decline eases concerns that the Middle East conflict would drive up supermarket prices.
Heatwave Boosts Summer Sales
The period coincided with the UK's hottest May day on record, which spurred a surge in summer-related purchases. Suncare sales jumped 128%, fresh beef burgers rose 40%, and fresh prepared salads and chilled dips increased 13%. Sales of no- and low-alcohol drinks climbed 23%, outpacing the 6% growth in the wider beer and cider category.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "There's something very British about the way a heatwave changes the weekly shop, and shoppers didn't need much encouragement to fire up the grill and turn to al fresco dining this time around. Barbecue staples performing well and shoppers turning to healthier options are a common summer trend, and we can expect to see this continue over the rest of June and into July, with the warm weather forecast to continue."
Barbecue Spending Nearly Doubles
Worldpanel's data shows that spending per person on food nearly doubles when households are barbecuing, at almost £5 per head compared with just over £2.50 for meals prepared inside. Meanwhile, the World Cup led to supermarkets applying the highest levels of promotions to beer and cider, snacks and crisps, and chilled pizza in five years.
Mr. McKevitt added: "Nearly a third of all grocery spending is now on promotion, and that upward streak shows no sign of breaking. Combined with strong online growth, it points to shoppers who know what they want and are increasingly confident about where and how to find the best deal. In short, retailers are having to compete hard for that summer shop."
Ocado Leads Growth, Tesco Holds Market Share
Ocado was once again the fastest-growing grocer, with sales up 13.5% over the 12 weeks to June 14 compared with the same period a year ago. Co-op also returned to growth, increasing its market share from 5.2% last year to 5.3% this year as sales grew by 2.7% after last year's cyberattack affected its figures for 2025. Tesco, the UK's largest grocer, now holds 28% market share with sales up 1.2%. Asda's sales were down 3.6% on last year, giving it 12.1% of the market.
