Shoppers are emerging from the cost-of-living squeeze with an appetite for premium brands and “treats”, according to posh grocery chain Waitrose.
“People are beginning to feel slightly more confident about their finances,” said Waitrose’s executive director James Bailey to the PA news agency.
“We’ve seen the signs that customers are beginning to trade back into some of the premium tiers – buying more brands, more treat products.”
Waitrose’s premium own-brand label No.1 saw a 20% sales lift in early August, said Bailey, while Waitrose Duchy Organic, the brand partnership between Waitrose and Duchy Originals, also saw a surge in volumes.
At the same time, Bailey noted an uptick in spending on promotional and discount items, as shoppers are “still looking for a bargain”.
Data published by the British Retail Consortium on Tuesday showed that food inflation slowed to 2% in August, down from 2.3% in July. Fresh Food inflation slowed even further to 1%, down from 1.4% in July.