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'Overall sales growth slows despite rise in fresh food, packaged grocery sales'

'Overall sales growth slows despite rise in fresh food, packaged grocery sales'
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Total till sales growth at stores slowed a bit during the four weeks to Sept 7 despite fresh food and packaged grocery seeing a boost in sales, shows a latest report, citing cooler weather and a return to regular routines for shoppers after the summer break as the main reasons.

According to data from NIQ, total till sales growth at UK supermarkets slowed to 4.0 per cent in the mentioned period down from a rise of 5.5 per cent in the previous month. There was a boost in sales for fresh food, including produce (+8.1 per cent) and meat, fish and poultry (+5.4 per cent).


Value sales for packaged groceries (+3.9 per cent) also grew, with unit growth of 1.8 per cent. Pet category was weaker, with a value sales decline of 3 per cent, and with a change in weather, sales of soft drinks were flat (+0.1 per cent).

The data also reveals that the online share of FMCG spend has increased to 13 per cent, up from 12.5 per cent a year ago, driven by a 1 per cent increase in online shoppers and 6 per cent more shopping occasions in the channel.

NIQ noted that this is indicative of the evolution in how consumers shop across formats and platforms, with rapid delivery and pure players driving e-commerce growth. This is reflected in the fact that online sales grew 6.1 per cent, outperforming bricks and mortar shopping, which increased 1.8 per cent over the four-week period.

Overall, there was a 2.2 per cent increase in shopping occasions across all channels as consumers aimed to take advantage of discounts, with promotional spend maintained at 25 per cent of all FMCG sales.

Sales of general merchandise goods were down 4.5 per cent as seasonal ranges changed and shoppers held back spend to focus instead on grocery shopping.

Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said, “September is closely tied to a change in how we shop following ‘back-to-school’, so retailers typically reinvigorate marketing efforts as customers refocus on new routines as we go from Summer to Autumn.

“With some 50 per cent of households saying they are moderately or severely impacted by the increases in the cost of living, this means retailers will need to be laser-focused in offering products and promotions that inspire customers who are budget-conscious as part of the push for sales growth in Q4.

"Many households are now budgeting for Christmas and slowly stocking their cupboards to help spread the cost. So whilst promotions are still key, assessing the impact of all media spend is more important as this helps retailers and brands get a better understanding of shopper behaviour and purchasing drivers.”

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