Retailers should reconsider their promotions and discount scheme as shoppers seem to be gravitating more towards items on promotion whose sale rose to 23 per cent in the four weeks ending April 22, the highest level since December 2020, majorly driven by an increased level of loyalty scheme discounts.
According to the data from NIQ (previously known as NielsenIQ), most categories saw an increase in promotional spend. In particular, 51 per cent of branded beer, wines and spirit sales were bought on offer, and 27 per cent of own-label meat, fish & poultry, as stores looked to attract shoppers during Easter.
Overall, the NIQ figures show that total till grocery sales growth was more subdued, falling back from 11.7 per cent in March to 9.7 per cent over the latest period. Value growth was again driven by inflation, with volumes slipping 3.8 per cent. However, during the week ending 8 April, the sunny weather and Easter weekend meant shoppers spent a total of £3.1bn – the highest weekly spend this year – with value growth of 21 per cent (against a non-Easter week in 2022).
NIQ’s data also shows that there was a 4.5 per cent increase in visits to stores, although this is down from last month (7.1 per cent). As a result, the online share of FMCG spend dipped to 10.8 per cent, down from 11.1 per cent last month.
Ahead of this weekend’s Coronation celebrations, NIQ research found that 20 per cent of households intend to buy extra or special groceries during this time, with 15 per cent intending to buy memorabilia.
Sales at supermarkets topped £2.7bn during the Jubilee week last year, a 10 per cent increase above the year-to-date average. With this in mind, sales for the Coronation week are expected to reach similar levels.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, commented: “With food inflation hitting 15.7 per cent in April and top line growth falling back a little, this suggests that some shoppers may have held back some spend before and after Easter to afford the Easter celebration. Inflation will continue to lift value growth, but the ongoing trend for shoppers to buy fewer items each trip is putting pressure on retailers to attract new shoppers and get more visits to drive overall sales. However, with summer fast approaching and the Coronation this weekend, this could kick start some incremental spend.”
He concluded: “The Coronation will be an event to celebrate, and as we saw over the Jubilee weekend, shoppers celebrated with fizz and teatime treats, so there could be a demand for similar products this year despite shoppers wanting to make savings. This means opportunities for premium own-label products that complement the occasion and meet the price point of consumers. Moreover, beers, wines and spirits could be a footfall driver as people look to commemorate and entertain.”
