Grocery inflation now stands at -1.7% for the 12 week period ending 16 August 2015. This means shoppers are now paying less for a representative basket of groceries than they did in 2014. This is a greater fall than the -1.6% reported last month and means that prices are falling faster than they were previously. Falling prices reflect the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including eggs, bread and tea.
- Australians are shopping more frequently (3 per cent increase) but spending less in store when they do so.
- According to Information Resources Inc. (IRI) the impact of the disruptive forces of discounters [with increased price activity and a growing footprint] is particularly apparent in grocery.
- Shoppers are increasingly shopping around for the best offers (a behaviour encouraged by the growth of discounters) and increasingly splitting their spend between grocery retailers.
“IRI senior consultant Johnny Gorman said even though many shoppers will keep a close eye on their spending, there are still opportunities for retailers and manufacturers to drive value.”