Complete Until gross sales picked up at UK supermarkets (+4.7%) within the final 4 weeks ending fifth October 2024, up from +4.0% within the earlier month, in keeping with new information launched as we speak by NIQ. That is doubtless as a consequence of customers beginning to look in the direction of seasonal merchandise as retailers roll out new Halloween and Christmas ranges, ensuing within the return to progress of Common Merchandise (+0.2%) for the primary time in 12 months. General, FMCG quantity progress throughout the full retailer was +1.4%.
A usually heat and sunny begin to September, and a robust first week of October helped increase gross sales with moist and cooler circumstances dampening mid-month spending as autumnal climate took maintain. NIQ information additionally reveals a continuation of evolving UK shopper behaviour, with a rise in individuals embarking on extra procuring missions all through the week, choosing smaller baskets averaging £18.62 in worth (4% decrease than final 12 months) as a consequence of lessening inflation. The most recent information reveals UK households looking for groceries virtually 5 instances per week, visiting eight totally different grocery shops with volumes up (+1.1%).
Swings in classes noticed confectionery lead the pack when it comes to worth progress leaping +11%, adopted by produce (+8.5%), meat, fish and poultry (+5.7%) and well being and wonder (+5.4%). Moist climate moderated customers’ thirst with weak efficiency in beer, wines, spirits (-1.8%) and delicate drinks (+0.1%). New environments resembling college and college, coupled with cooler climate, inspired customers to deal with their well being be it preventative in addition to cures. The most recent 4 weeks noticed an +16% enhance in cough, chilly and flu medicine and +10% nutritional vitamins and dietary well being.
By way of retailer efficiency during the last 12 weeks, Ocado maintains its standing because the UK’s quickest rising retailer during the last 12 weeks (+15.9%), whereas M&S clinches second (+12.4%).
Mike Watkins, NIQ’s UK Head of Retailer and Enterprise Perception, stated: “Decrease inflation signifies that the worth of the procuring basket is decrease than a 12 months in the past and even with greater disposable earnings for some households, customers nonetheless want a catalyst to spend. We’re seeing a return of procuring extra typically as visits to shops are up however customers are cherry-picking provides in the intervening time and maybe planning for larger retailers later within the month round half time period. Marks and Spencer attracted 800,000 new customers within the final 4 weeks, and over 12 weeks, 1 in 3 households (33%) are actually procuring at M&S for foods and drinks.”
NIQ information additionally highlights what customers are searching for when selecting the place to buy their Christmas groceries; 49% stated low costs, 48% meals high quality and 47% good inventory availability. This means reasonably priced costs and premium foods and drinks could be beneficial this Christmas. 3
With This autumn now underway, Watkins provides: “Retailers can be trying to the normal promoting campaigns in a few weeks’ time to essentially get customers into procuring mode as a strategy to increase weekly gross sales within the closing eight weeks of the Golden Quarter. Buyers will look to spend extra after the half-term vacation and retailers have causes to be optimistic this Christmas will deliver a stronger efficiency than final. Many households are actually budgeting for Christmas and slowly stocking their cabinets to assist unfold the associated fee. The place they’re much less squeezed with extra disposable earnings they might splash out in comparison with this time final 12 months.”
Desk: 12-weekly % share of grocery market spend by retailer and worth gross sales % change