Welcome to the February issue of Grocery Trader. Grocery price inflation fell slightly to 6.8% in January, down from 6.9% in December 2023, according to the leading marketing data and analytics company Kantar. This softer decline compares with a 2.2 percentage point decrease seen between November and December 2023. Meanwhile, take-home grocery sales grew in value by 2.9% over the four weeks.
Research from JTI (Japan Tobacco International) has revealed that more than a quarter of retailers (28%) have seen a rise in customers openly asking for illicit tobacco and vape products. A quarter of retailers (26%) state that their store has been negatively impacted due to the sale of illicit tobacco and vapes by other businesses in the area, with 30% of retailers aware of one or more stores within a three-mile radius allegedly selling illicit products. With two thirds of retailers (67%) also saying that they expect the proposed generational tobacco ban will lead to an increase in illicit tobacco activity, there is concern within the industry that illegal products will become more prevalent, damaging sales for the majority of hard-working retailers.
Kenvue is working with Tesco and the Trussell Trust to support the charity’s network of more than 1,300 food bank centres to provide emergency food and support to people who may struggle to afford essential items this winter. This campaign comes as the Trussell Trust expects to distribute over 1 million emergency parcels across its network this season and demand continues to increase. Kenvue, the makers of Listerine, Johnson’s Baby, and Clean & Clear, will donate 10p per qualifying pack sold of these products over the winter season.
The cost-of-living storm that we’ve all weathered over the past year looks set to continue as inflation levels remain sky high and purse strings continue to be tightened, all of which present a stubbornly challenging picture for grocery brands. There is, however, a ray of sunshine for brands, as this tough environment has made consumers more receptive than ever to change. Therefore, it really pays to invest in understanding and analysing the consumer psyche when it comes to their checkout decisions, writes Colin Horan, Strategic Partner, FMCG at Clear Channel UK.
Rachel Wells is UK Sales Director for St Pierre Groupe. Almost one year into the role, we sat down with Wells in a Partners for Profit interview to understand how its flagship brand – St Pierre – is performing. Wells also discussed which categories are ‘ones to watch’ in bakery and what’s next for the UK’s best-tasting brioche brand.
Contemporary grocery stores face a diverse range of challenges. Alongside the demands of quality control and customer service, there is the pressure to reduce cost, manage waste, and operate sustainably. Bengt Lundberg is the CEO of Disruptive Technologies, outlines 10 ways grocery stores can improve performance with IoT sensors.
Enjoy reading the issue.
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