Supermarket trust plummets as cost of budget brands and basics soar

// Food and drink inflation reached 15% in December across major supermarkets
// The price of basic groceries such as butter, milk and cheese went up 30% year-on-year at some supermarkets in December, new figures show

Supermarket basics soared in price by up to 30% on a yearly basis last month – as new research shows how shoppers are feeling the squeeze in stores.

The huge increase was highlighted in the Which? inflation tracker, which reveals how prices have changed at Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose.

The tracker shows that overall food and drink inflation in December was at 15%.

Despite being the cheapest supermarket overall, Lidl’s prices went up the most in December (21.1%), followed closely by Aldi (20.8%), according to Which?’s figures.

Asda had the third highest inflation at 15.4% – but closer to the industry average of 15% – followed by Waitrose (14.5%), Sainsbury’s (13.7%), Tesco (13.1%), Morrisons (12.9%) and Ocado (10.5%).

Across the eight retailers, basics such as butters and spreads went up an eye-watering 29.4%. Milk prices increased by 26.3% and cheese was up 22.3% during the same period.


Subscribe to Retail Gazette for free

Sign up here to get the latest news straight into your inbox each morning


Budget and own-brand items also rose – 20.3% and 18.5% respectively – compared to premium and branded counterparts – up 12.6% and 12.5%.

Overall food price inflation averaged 13.3% in December, according to the British Retail Consortium’s latest figures.

Which? head of food policy Sue Davies said: “Some households are already skipping meals to make ends meet and our findings show trust in supermarkets taking a hit as many people worry they are putting profits before the people suffering during this cost of living crisis.

“Supermarkets must do more, Which? is calling for them to ensure everyone has easy access to basic, affordable food ranges at a store near them, particularly in areas where people are most in need.”

In response, an Asda spokesperson said: “We’re working hard to keep prices in check for customers and remain the lowest-priced major supermarket – a position recognised by Which? in their regular monthly basket comparison which has named Asda as the cheapest supermarket for a big shop every month for the last three years.”

A Waitrose spokesperson also said: “Which? have told us that our trust ranking from our own customers is among the highest of all the brands they covered. This shows that customers who shop with us know who we are and trust us to provide the quality and value that they’re looking for.”

Which?’s latest Consumer Insight survey also showed that trust in supermarkets is plummeting, from 67 in May 2021 to 42 now.

Trust at Aldi and Lidl tended to be lower than their rivals 18 months ago but has stayed relatively the same during this period, leaving it now higher than average at 48 and 45 respectively.

Waitrose had the lowest level of trust (29) among all consumers, although trust levels among its own customers is significantly higher at 54.

Price rises emerged as a common reason for a lack of trust, particularly the perception prices were sometimes artificially inflated and went beyond what was necessary for businesses to offset their own rising costs.

Click here to sign up to Retail Gazette‘s free daily email newsletter

Grocery

Filters

RELATED STORIES

Menu

Close popup