By Jonathan Davies

Low inflation of prices has resulted in the slowest growth of supermarket sales in 10 years, according to research company Kantar Worldpanel.

Supermarket grocery sales grew by just 0.8% in the 12 weeks to the end of August, compared with the same period last year.

Price wars, triggered by increasing market shares for budget supermarkets like Aldi and Lidl, and deflation of staple goods prices have dragged inflation down to 0.2% for the period.

Kantar said Aldi's market share grew to 4.8%, up from 3.7%. And Lidl's share was up 0.5% from 3.1% to 3.6%.

Tesco's market share continued to fall. A 4% fall in sales resulted in its share dropping to 28.8%, down from 30.2% a year earlier.

Kantar Worldpanel director Edward Garner, said: "Competitive pricing among the big grocers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation down yet again.

"This naturally impacts on the overall growth of the grocery market, which has fallen to a 10 year record-low of 0.8%."

Where do you do your shopping? Are you sticking with the 'Big Four' or are the likes of Aldi and Lidl tempting you? You can email your reactions to editor@freshbusinessthinking.com

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