• Text size      
  • Send this article to a friend
  • Print this article

Less is spent on groceries as supermarket wars continue

SPENDING in food stores dropped for the first time in at least 25 years as the supermarket price war took effect, official figures have shown.

July's year-on-year fall of 1.3 per cent was the first since records began in January 1989, according to the Office for National Statistics (ONS).

It said: "The drop suggests that prolonged discounting and price wars were having an effect on overall sales."

The grocery sector has become a price-cutting battleground as Tesco, Asda, Sainsbury's and Morrisons feel the squeeze from discounters Aldi and Lidl, who are gnawing away at their market share.

The headline figure for retail sales showed a weaker than expected 0.1 per cent growth month-on-month. However, a three-month on three-month increase of 0.3 per cent was the seventh consecutive improvement, the longest period of sustained growth by this measure since 2007.

Scottish retail sales fell by 1.8 per cent in July, according to data from the Scottish Retail Consortium which was published this week.

Contextual targeting label: 
Food and drink

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.