Total till sales at UK supermarkets rose to +3.2% in the last four weeks (to 1 November), according to new data just released by analysts NielsenIQ (NIQ).
This is a marked slowdown from the +4.1% growth recorded in September, it adds, which is likely due to shoppers’ anticipation of seasonal savings and promotional days like Black Friday in the lead up to Christmas, as well as the ongoing pressure on household finances.
In FMCG in the last four weeks the only super categories with unit growth were dairy (+1.6%), meat, fish and poultry (+1.4%) and fresh produce (+0.4%)the research shows.
In confectionery, unit sales fell (-3.1%), despite Halloween being a typical time for shoppers to indulge in sweet treats, and the reported +4.4% uplift in value sales was primarily due to inflation.
NIQ data also shows that in-store visits were up (+3.9%) and comes as retailers continue to entice shoppers with price cuts from loyalty schemes, with the amount of the shopping basket purchased on promotion continuing to make up 24% of sales.
Mike Watkins (left), head of retailer and business insight at NielsenIQ, said: “The slowdown in growth in the last four weeks was not helped by continued inflation, fragile consumer confidence and a generally mild October and any discretionary spending power has not translated into extra food and drink sales at food retailers during the Halloween half term.
”The mood around possible tax rises in the November budget may not have helped sentiment either.
“The upside is that whilst shoppers are economising, they’re not compromising. With a weakness in out of home spend, shoppers are likely to ‘dine in home’ more which means food retailers are likely to see strong growth in premium private label ranges in the next few weeks.
“NIQ see food sales growth continuing at current levels for the rest of November, but we expect sales to accelerate in early December and it will depend on the success of the current advertising campaigns to encourage shoppers to spend more, as well as the impact of Black Friday in diverting some spend.”
No comments yet