Visits to stores are up but shoppers are "cherry-picking offers" at the moment and perhaps planning for bigger shops later in the month, shows an industry report released today (16).
According to new data released today by NIQ, total till sales picked up a bit at UK supermarkets (+4.7 per cent) in the last four weeks ending Oct 5 2024, up from +4.0 per cent in the previous month, according to. This is likely due to shoppers starting to look towards seasonal products as retailers roll out new Halloween and Christmas ranges, resulting in the return to growth of General Merchandise (+0.2 per cent) for the first time in 12 months. Overall, FMCG volume growth across the total store was +1.4 per cent.
A generally warm and sunny start to September, and a strong first week of October helped boost sales with wet and cooler conditions dampening mid-month spending as autumnal weather took hold.
NIQ data also shows a continuation of evolving UK shopper behaviour, with an increase in people embarking on more shopping missions throughout the week, opting for smaller baskets averaging £18.62 in value (4 per cent lower than last year) due to lessening inflation. The latest data shows UK households shopping for groceries almost five times a week, visiting eight different grocery stores.
Swings in categories saw confectionery lead the pack in terms of value growth jumping +11 per cent, followed by produce (+8.5 per cent), meat, fish and poultry (+5.7 per cent) and health and beauty (+5.4 per cent).
Wet weather moderated shoppers’ thirst with weak performance in beer, wines, spirits (-1.8 per cent) and soft drinks (+0.1 per cent). New environments such as school and university, coupled with cooler weather, encouraged shoppers to focus on their health be it preventative as well as remedies. The latest 4 weeks saw an +16 per cent increase in cough, cold and flu medication and +10 per cent vitamins and dietary health.
NIQ data also highlights what shoppers are looking for when choosing where to shop for their Christmas groceries- 49 per cent said low prices, 48 per cent food quality and 47 per cent good stock availability. This suggests affordable prices and premium food and drink might be favourable this Christmas.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said, “Lower inflation means that the value of the shopping basket is lower than a year ago and even with higher disposable income for some households, shoppers still need a catalyst to spend.
"We are seeing a return of shopping more often as visits to stores are up but shoppers are cherry-picking offers at the moment and perhaps planning for bigger shops later in the month around half term.
With Q4 now underway, Watkins adds, “Retailers will be looking to the traditional advertising campaigns in a couple of weeks’ time to really get shoppers into shopping mode as a way to boost weekly sales in the final eight weeks of the Golden Quarter.
"Shoppers will look to spend more after the half-term holiday and retailers have reasons to be optimistic this Christmas will bring a stronger performance than last. Many households are now budgeting for Christmas and slowly stocking their cupboards to help spread the cost. Where they are less squeezed with more disposable income they may splash out compared to this time last year.”
