By Michael Susin


U.K. grocery inflation fell in January as intense promotional activity provided some relief for budget-pressured households.

Annual grocery inflation fell to 3.3% for the four weeks to Jan. 26 compared with the previous year. This followed 3.7% grocery inflation recorded in December, according to the latest report from research firm Kantar.

Kantar said take-home grocery sales rose by 4.3% on year, and nearly one third of this spending was on promotions.

Consumers are also ditching brand names and prioritizing keeping costs down, with private-label sales proportionally reaching a record high of more than half of sales in January.

Following the Christmas festivities and related excesses, January's sales were also marked by an increase in wellness trends, with more than 10% of the average consumer's bill spent on fresh staples such as fruit, vegetables and salad.

Sales of low-and-no alcohol drinks were 7% higher than the same period a year prior, as the "dry January" trend becomes increasingly popular among older shoppers.

Among the top-performing grocers over the 12 weeks to Jan. 26, sales of the German discounter Lidl rose 7.4% and reached three consecutive years of growth, holding a market share of 7.2%.

Online retailer Ocado was the fastest-growing grocer for the ninth consecutive month, with sales up 11.3% and a 1.9% market share.

The U.K.'s largest grocer, Tesco, achieved a market share of 28.5% and saw a 5.6% rise in sales.


Write to Michael Susin at michael.susin@wsj.com


(END) Dow Jones Newswires

02-04-25 0624ET