According to new data from analysts NielsenIQ (NIQ), total till sales at UK supermarkets grew by 3.3% in the last four weeks ending 29 November.
However, despite this growth, NIQ data shows shoppers are looking to prioritise savings on everyday essentials to spend on treats and indulgences over Christmas.
Overall sales on promotion increased slightly to 25% of FMCG sales over the past four weeks with in-store visits rising (+4.5%) as shoppers chased down deals.
The new data shows that 17% of own label sales in the last four weeks were purchased on promotion - up from 16% a year ago with sales for brands on promotion remaining unchanged at 33%.
Heading into December, NIQ data shows that 40% of households plan to use loyalty points and vouchers this Christmas with 23% intending to shop around based on prices and promotions.
In terms of category performance, the fastest growing super category was fresh foods (+5.3%) with the ambient side growing (+2.6%) with an increase in sales of seasonal favourites, as shoppers opted for premium ingredients to elevate ordinary festive meals.
Shoppers are also stocking up on Christmas morning favourites, with frozen food sales rising (+2.1%).
Sweet treats are also on the menu with confectionary, snacks and soft drinks sales rising (+4.5%). However, sales of beer, wine and spirits (BWS) fell, down 1%.
Mike Watkins (left), head of retailer and business insight at NIQ, said: “Shoppers are looking for an affordable Christmas this year and many have been holding back their spend with unit growths across the total store down -0.8%.
“Instead, they’re spending wisely and making focused savings on the weekly shop to be able to buy treats and indulgences for the family. The good news is that sales will now accelerate and over the four weeks to 27 December, we expect almost £20bn will be spent - a growth of around 2.8% on last year.
“Retailers are showcasing their private labels strongly this year and are supporting their Christmas ranges with attractive offers and promotions. Premium private label is currently the fastest growing segment with a 8% growth in value sales and unit growth of 4% and looks set to gain further category share this Christmas.”
No comments yet