Just like that, September is here!
You probably had a busy Summer, so let me catch you up on all the big news in the world of consumer goods.
Inflation isnât over but shoppers feel more optimistic đ
Grocery Price Inflation Rises: After 17 months of falling rates, grocery inflation increased to 1.8% in August 2024, up from 1.6% in July. This marks the first rise since March 2023, but remains close to pre-crisis averages.
Consumer Confidence is slowly improving: GFKâs consumer confidence barometer shows that UK consumer confidence remained unchanged from July to August (-13)Â but is much more optimistic than earlier this year. Shoppers are feeling more positive about personal finances and making major purchases, but less confident about the overall economic outlook.
Whatâs the latest with the Grocery retailers?
đľ Tesco remains the UK's top supermarket, increasing its market share to 27.6%. It has been growing steadily for over a year, with a 4.9% rise in sales. Tescoâs Clubcard activity has been a key driver of growth but other stores are catching up.
đ  Sainsburyâs are the ones to watch, with market share growing by 0.5 percentage pointsâits biggest gain in over 25 years. Sales have increased by 5.2% year-on-year, making it the fastest-growing traditional supermarket. It was seen by shoppers as the âmost improved retailerâ in NIQâs annual survey, with notable gains in quality, convenience, and product choice.
đŁ Ocado has been the UKâs fastest-growing supermarket this Summer, with an 8.1% increase in active customers. Ocado are focussed on utilising deep customer insights and strong supplier collaborations, allowing them to be more agile and responsive with their range and pricing.
đ˘ ASDA continues to face challenges, with a 5.3% drop in like-for-like sales in Q2 and a shrinking market share, now at 12.6%. The retailer is in the midst of a major reset, including a ÂŁ30m investment in store improvements and a search for a new CEO to steer the company back on track.
đĄ Morrisons is ramping up its loyalty strategy, slashing prices on over 2,000 products for More Card holders in September, a major push to compete with other big players like Tesco and Sainsbury's.
Mars x Kellanova - a Bigger Player in Snacking
Mars has agreed to acquire Kellanova, the former snack division of Kellogg's, in a deal valued at $36 billion, making it the largest food and drink deal since Kraft Heinz's $40 billion merger in 2015.
By acquiring Kellanova, Mars will add popular snacks like Pringles and Cheez-It to its snacking portfolio. The deal also expands Mars' international reach. For example, Pringles are more popular in Europe than in North America.
The Mars-Kellanova deal is expected to close in early 2025 and will boost Mars' global market share in snacking to about 6%, making it the third-largest player in the worldwide snacking industry, behind PepsiCo and MondelÄz International.
Itâs still unclear what impact the merger will have on jobs and operational efficiencies as the companies integrate. Such transitions can be challenging for those involved, so itâs important to approach these changes with empathy and understanding.
If you know any category people who need some career guidance, feel free to send them my way!
As we head into autumn, the retail world is buzzing with change.
Stay tuned and reach out if you need any help navigating these changes.
Thanks for catching up with us, and good luck with whatâs left of 2024.
All the best,
Ella and the May Insight team.
If this email sparked some interest, your curious brain could be the missing piece of our teamâs puzzle!
Weâre on the look out for great category people to join our team on a permanent or freelance basis. Get in touch if you (or anyone you know) could be a great fit.
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