UK supermarket sales growth has slowed to its lowest since January, impacted by various factors.
- Total Till sales increased by 7.2% in the four weeks to 12 August, influenced by lower inflation.
- Unstable summer weather contributed to fewer store visits by consumers, affecting overall sales.
- Retailers increased promotional activities by 23% in response to the cost-of-living crisis.
- Despite a general slowdown, Tesco, M&S, Aldi, and Lidl gained market share.
Total Till sales at UK supermarkets increased by 7.2% in the four weeks leading up to 12 August, marking the slowest growth since January according to the latest data from NIQ. This deceleration is attributed mainly to lower inflation rates, as well as unseasonable weather conditions that deterred consumers from frequent shopping trips.
To combat the stagnation in sales, there has been a significant rise in promotional activities, with retailers amplifying their efforts by 23% compared to previous months. This strategic move aims to mitigate the effects of the ongoing cost-of-living crisis.
The analysis highlights that Tesco’s sales surged by 9.7%, allowing it to secure greater market share over the past 12 weeks. Other retailers such as M&S, Aldi, and Lidl also saw market share growth, indicating varied consumer preferences during this period.
In contrast, retail giants Morrisons and Co-op reported modest growth, with increases of only 1.7% and 2% respectively, illustrating a disparity in competitive performance.
Mike Watkins, NIQ’s head of retailer and business insight, remarked, “Recent weeks have seen a decline in supermarket volumes, likely influenced by factors such as summer holidays and unpredictable weather.” This underscores the broader challenges impacting consumer spending, not just confined to grocery shopping.
The data further points out that 62% of consumers continue to favour discount stores, with these retailers attracting over 780,000 new shoppers compared to the previous year.
While inflation eases, the challenge remains for retailers and manufacturers to stimulate volume growth in the FMCG sector.
