Heatwave spending cools as at home dining shopping surges

New data released today (20 August) has shown total till sales growth at UK supermarkets slowed (+3.7%) in the last four weeks to 9 August.

This is down from the +5.8% recorded in July, according to data released by analysts NielsenIQ (NIQ).

The figures suggest that following the early summer heatwaves at the end of June and early July, along with treating themselves over the summer of sports, UK shoppers chose to dial back spend to save money, with the growth in food inflation to 4% also becoming top of mind.

Relevant to the convenience channel, this switch led to a drop in average spend per visit (-3.1%) compared to this time last year. However, visits increased (+6.2%) as shoppers took advantage of retailers’ promotional spend, which accounted for 23% of all value sales across all stores.

With shoppers looking for more budget friendly, quick meal solutions, Meals for Tonight missions are also on the rise, with one in five trips consisting of quick, small baskets of fresh food, chilled meat and fruit and vegetables, NIQ’s research shows - again an area where convenience can play to its strengths.

Amongst the fresh and ambient categories in growth were dried vegetables and pulses (+28%) and packaged grocery (+4.2%). Frozen fruit also saw strong demand, growing +13.2% in value as shoppers turned to versatile, waste-free options for their smoothies, crumbles and breakfast pots, NIQ said.

Mike Watkins, head of retailer and business insight, said: “After the three heatwaves in early summer, this reset was expected and the slowdown in spend was felt across the industry. The convenience channel was particularly impacted with sales down -1.1% as was the online grocery channel at -2.2%.

“The start of peak summer holidays also disrupted shopping habits more than usual as the uptick in food inflation would have given many shoppers a reason to delay non-essential spend for a few weeks. However, with shoppers looking to dine in at home, in the summer this often means more alfresco with barbeques replacing some meals out or ordered in.”