In a recent update from April 2023, UK grocery price inflation has recorded a decrease for the 14th consecutive month, with supermarket prices being 3.2% higher than they were a year ago. This reduction in price inflation has been credited to an increase in promotional deals offered by supermarkets, which have reached their highest level outside of Christmas time since June 2021. Kantar analysts have estimated that these promotions have saved British consumers approximately £1.3 billion in total, equating to savings of around £46 per household.

Furthermore, the rise in promotional activity has coincided with a 3.3% increase in take-home grocery sales. Additionally, the early Easter period significantly boosted confectionery sales, culminating in over £100 million spent on sweets and chocolates in the week leading up to Easter Sunday, with chocolate egg sales increasing by 3% from last spring. Fraser McKevitt from Kantar stated that the surge in supermarket deals, alongside reductions in specific categories such as toilet tissues, butter, and milk, has helped lower grocery inflation for consumers.

Meanwhile, Tesco’s wholesale business, Booker, is facing criticism for reportedly undermining the competitiveness of local shops. Independent retailers have expressed concerns that Booker’s pricing is often higher compared to Tesco’s retail stores, with some items reportedly being sold at double the price. Despite Tesco’s assurances during the 2017 acquisition of Booker that the merger would benefit both shoppers and independent retailers, discrepancies in pricing have led to frustration among local shopkeepers. This issue is being monitored by the Competition and Markets Authority amid broader concerns about grocery inflation and the effect of supermarket loyalty discount schemes on the market. Booker has defended its pricing policies, emphasizing its commitment to providing competitive prices and quality service to retailers.