M&S and Ocado show robust sales growth in recent months.
- Sales increased by 10.7% for M&S and 14.3% for Ocado.
- Asda and Aldi faced a decline in sales during the same period.
- Online shopping and in-store visits both rose significantly this summer.
- The market adapts as consumer priorities like value and inflation concerns remain pivotal.
In a period marked by dynamic consumer behaviour, M&S and Ocado have emerged as the fastest growing retailers, with a sales increase of 10.7% and 14.3% respectively over the past 12 weeks. This growth is attributed to a rise in household shopping for summer indulgences, fresh food, and grocery items. As summer concludes, these retailers are under pressure to sustain this growth.
Conversely, Asda and Aldi experienced a downturn, with sales declining by 6.4% and 0.7% respectively compared to the previous year. This shift highlights the competitive challenges within the retail sector, as companies navigate fluctuating consumer demands and economic conditions.
Overall, UK supermarkets noted a 5.5% increase in total sales growth over the four weeks ending 10 August 2024. This is the highest growth recorded this year, driven in part by a brief heatwave. Online sales also saw a rise of 6.8%, with online expenditure capturing 12.8% of the FMCG market, indicating a shift in shopping habits.
Foot traffic to physical stores increased by 2.7%, accompanied by a 10.5% rise in online orders, suggesting a balanced recovery in consumer shopping patterns. Additionally, convenience store sales grew by 4.8%, further indicating consumers’ preference for accessible shopping options.
Despite positive sales trends, concerns over inflation persist, impacting consumer loyalty and spending behaviour. Nearly 29% of households identify inflation as a top concern, underscoring the importance of loyalty and membership schemes in maintaining shopper engagement.
As the retail landscape continues to evolve, maintaining growth amidst economic pressures remains a critical challenge for supermarkets.
