Total till sales at UK supermarkets dropped by 2.9 per cent in the four weeks to 29 January compared to the same period last year, according to new data from NielsenIQ.
However, the data and insights business has branded this a “very modest decline”, as last year recorded growth of 10.6 per cent while the UK was in its final Covid-19 lockdown period.
While online shopping occasions fell by 14 per cent, in store visits rose 12 per cent. However, online’s share of sales rose 13.1 per cent, up from 11.3 per cent in December and its highest share since July 2021. The channel peaked with a share of 16.1 per cent in January 2021.
Meanwhile, sales in the convenience channel were up 2.1 per cent year-on-year, as shoppers are no longer limited in how and when they can visit stores. Consumers are shifting spend back to shopping little and often, NielsenIQ claims, with sales increasing for sandwiches (+60 per cent), prepared salads (+29 per cent), flavoured non-carbonated drinks (+27.5 per cent) and mineral water (+19 per cent).
Elsewhere, beers, wines and spirits sales have dropped by 14.2 per cent, frozen foods are down 11 per cent, and packaged grocery is down 8.3 per cent. Delicatessen experienced strong growth of 11.1 per cent, while health and beauty was up 9.4 per cent, pet care was up 8 per cent, and soft drinks was up 5.6 per cent.
“Sales during the first weeks of January are typically some of the lowest in the year and given last year’s lockdown, we’re measuring against very high comparatives,” explains NielsenIQ’s UK head of retailer and business insight, Mike Watkins.
“However, our latest data shows a continued resilience in online grocery shopping and rising sales at convenience stores in recent weeks. This suggests that shoppers are continuing to adopt omnichannel shopping habits, now that all remaining restrictions are lifted.”
Over the coming three months, Watkins predicts a decline in total till growth before bouncing back by Easter, a decline in discretionary spending as cost-of-living pressures rise, and higher visits with smaller basket sizes made across all channels.
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