Food inflation fell to its lowest level since September 2021, according to data from market research firm Kantar.
Lower inflation helped boost branded sales by 3.6 percent, outpacing grocers’ own-brand sales, which rose 2.7 percent.
The fall coincides with a sharp rise in monthly footfall this year, with UK shoppers visiting supermarkets 2% more often during this period than a year ago.
With England competing in the Euros, football fans increased their beer sales by an average of 13% on the days the team played, compared to the same day the previous week.
Promotions run by supermarkets to attract football fans during Euro 2024 have led to increased competition between chains in areas such as beer and snacks.
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However, with many games taking place on ‘school days’, Brits appear to be opting for moderation, with spending on non-alcoholic and low-alcohol beer on match days increasing by 38%.
“England’s hopes may have been dashed on Sunday, but there were still some reasons to celebrate in the grocery industry,” said Fraser McKevitt, head of retail and consumer insights at Kantar.
“Sales of potato chips and snack foods also increased, increasing 5% from the previous month.”
Markets such as vitamins, minerals, supplements and refrigerated fruit juice saw price increases, while toilet paper, butter and dog food saw the fastest price declines.
In retail, industry figures showed Tesco (TSCO.L) achieved its biggest market share gain in almost three years, widening its lead as Britain’s largest supermarket.
The retailer held a 27.7% market share, an increase of 0.7 percentage points compared to last year and the biggest increase since November 2021, according to Kantar data.
Waitrose increased its market share for the first time since January 2022, rising 0.1 percentage point to 4.5%, as spending at premium grocery stores increased by 3.3%.
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Ocado (OCDO.L) saw sales rise 10.7 percent in the 12 weeks to July 7, making it the fastest-growing grocer for the fifth consecutive month.
The key data was released just 24 hours before official inflation figures for June were released.
Economists widely expect the consumer price index to fall to 1.9% from 2% last month.
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