Shoppers divide over credit crunch

Mid-priced supermarket ranges have experienced a drop in sales as shoppers are choosing either the cheapest or higher-end options, the Grocer magazine has said.

Value ranges are increasingly popular among those wishing to stay
debt free
during the current growth in food prices, while higher-priced frozen ready meals from Sainsbury’s and Marks and Spencer are also doing well, a spokesman from the magazine said.

Alex Becket, inflation expert for the magazine, said: “Middle of the road, standard ranges are dipping. Shoppers seem to want either a treat or cheap deal.”

One explanation for the divide may be that people are choosing to eat out less and are therefore trying to replicate a restaurant experience at home occasionally, while trying to keep everyday spending down.

Mr Becket added food prices are not expected to fall but growth may slow when “the world readjusts” to population growth and climate problems.

According to Defra, food price inflation was 9.7 per cent last month, compared to overall inflation of 3.8 per cent.

By Morwenna Kearns

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