Whole Until gross sales development slowed at UK supermarkets (+4.0%) within the final 4 weeks ending seventh September 2024, down from +5.5% within the earlier month, in keeping with new information launched at present by NIQ. This slowdown in development is probably going resulting from cooler climate and a return to common routines for consumers after the summer season break.
NIQ information additionally reveals that the web share of FMCG spend has elevated to 13%, up from 12.5% a 12 months in the past. This has been pushed by a small development (1%) in internet buyers, but in addition extra on-line buying events (+6%). That is indicative of an evolution in how customers store throughout codecs and platforms with the speedy supply and pure gamers additionally driving FMCG eCommerce development.
With this in thoughts, there was a web based gross sales development for FMCG (+6.1%) which carried out forward of brick and mortar buying (+1.8%) over the previous 4 weeks. Total there was a rise (+2.2%) for buying events throughout all channels as consumers aimed to reap the benefits of reductions with promotional spend maintained at 25% of all FMCG gross sales.
Gross sales for Common Merchandise have been down 4.5% as seasonal ranges modified and consumers held again spend to focus as a substitute on grocery buying. There was nevertheless a lift in gross sales for recent meals, together with produce (+8.1%) and meat, fish and poultry (+5.4%). Worth gross sales for packaged grocery (+3.9%) additionally grew, with unit growths of +1.8%. NIQ information recorded that the pet class was weaker with a price gross sales decline of -3% and with a change in climate, gross sales of soppy drinks have been flat. (+0.1%)
When it comes to retailer efficiency during the last 12 weeks, Ocado (15.4%) stays the quickest rising retailer, adopted by M&S (+12.4). Morrison`s elevated spend per go to following extra Extra Card presents and Waitrose attracted extra consumers and go to in comparison with final 12 months. Discounter market share has stabilised (17.6%) and has now returned to the identical stage as in February 2023.
Mike Watkins, NIQ’s UK head of retailer and enterprise perception, mentioned: “September is carefully tied to a change in how we store following ‘back-to-school’, so retailers sometimes reinvigorate advertising and marketing efforts as clients refocus on new routines as we go from Summer season to Autumn. With some 50% of households saying they’re reasonably or severely impacted by the will increase in price of dwelling this means retailers will have to be laser-focused in providing merchandise and promotions that encourage clients who’re budget-conscious as a part of the push for gross sales development in This autumn”.
Watkins provides: “Many households are actually budgeting for Christmas and slowly stocking their cabinets to assist unfold the price. So while Promotions are nonetheless key, assessing the impression of all media spend is extra vital as this helps retailers and types get a greater understanding of purchaser behaviour and buying drivers.”
Desk: 12-weekly % share of grocery market spend by retailer and worth gross sales % change
