Rising food prices have helped the value of grocery sales rise but have hit volumes.

Headline value sales growth rose to 1.9% in the four weeks to July 9 compared to 1.1% the previous month, the latest Nielsen Scantrack data showed. But volumes fell 1.7% compared to a 1.3% decline over the same periods.

Nielsen senior manager, retailer services, Mike Watkins said:  “Inflation is dampening demand and retailers are seeing falling unit sales as shoppers continue to struggle not only with food costs but with rising fuel prices and utility bills as well.”

Of the big four grocers, Morrison’s put in the best performance in the four weeks to July 9, when it delivered growth of 4.4%. On a 12-week basis Morrisons’ increased sales by 5.9% and Asda achieved the lowest growth of 3.1%.

Outside the big four, Waitrose and Iceland notched up 12-week growth of 7.5% and 7.8% respectively. Marks & Spencer recorded a 2.3% advance.

12 Weekly% Share of grocery market spend by retailer and value sales % change

 12 weeks % share to 12 weeks % share to YoY value change 
 10-Jul-1009-Jul-11 
TESCO27.8284.60%
ASDA15.315.23.10%
SAINSBURY’S1515.14.90%
MORRISONS10.710.95.90%
CO-OP6.47.216.60%
CO-OP AND SOMERFIELD7.87.2-3.40%
WAITROSE3.83.97.50%
MARKS & SPENCER3.43.32.30%
ICELAND1.81.97.80%