Data released today (1 April) shows total till sales at the UK’s major supermarkets grew (+4.3%) in the last four weeks ending 21 March, following subdued (+3.3%) growth in February,
That’s according to new data released today by analysts NielsenIQ (NIQ). The news is worthy of note to convenience retailers as it signals this growth has only really been due to Mothering Sunday falling two weeks earlier in the calendar than last year, as well as shoppers getting a head start on Easter shopping.
The week before Mothering Sunday, ending 14 March, also saw a brief interlude of warm Spring weather, which coincided with a surge in sales (+9.3%) at the major UK supermarkets and contributed to an extra £17m spend as UK shoppers splashed out on gifts.
However, the frequency of visits to stores was down for the second month running (-1.1% year-on-year).
As well as Mothering Sunday gifting, Easter promotions appeared earlier online and in-store this year, with data showing an increase in chocolate confectionery sales (+22% value, +7.9% units), and a boost in sales for Easter Eggs (+44% value, +37% units) on this time last year when Easter was later.
Mike Watkins (left), head of retailer and business insight at NIQ, said the unpredictability of the war was also having an affect, and may still further. “Regarding inflation, it will take some weeks for supply chain cost increases to be reflected in the sales data, due to the Middle East conflict trickling down into retail prices. However, concerns about the wider economic situation have already started to influence consumer confidence as the GfK index fell further this month to -21.
”Easter is looking good for the industry, but there are storm clouds on the horizon.”
“Easter is looking good for the industry, but there are storm clouds on the horizon. As well as the downside from the offset comparatives later in April, shoppers now have concerns around rising prices and the wider economic uncertainty.
“So, whilst this has not yet impacted FMCG performance, rising fuel prices are likely to have a knock-on effect on shopper sentiment and spend post-Easter, as shoppers, remembering the period of high inflation in 2023, could start to batten down the hatches.”
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