Sales of items on promotion at supermarkets in the UK rose to 23% in the four weeks ending 22 April, the highest level since December 2020, helped by an increased level of loyalty scheme discounts.
The data from NIQ (previously known as NielsenIQ) reveals that most categories saw an increase in promotional spend. In particular, 51% of branded beer, wines and spirit sales were bought on offer, and 27% of own-label meat, fish & poultry, as stores looked to attract shoppers during Easter.
Overall, the NIQ figures show that total till grocery sales growth was more subdued, falling back from 11.7% in March to 9.7% over the latest period. Value growth was again driven by inflation, with volumes slipping 3.8%. However, during the week ending 8 April, the sunny weather and Easter weekend meant shoppers spent a total of £3.1bn – the highest weekly spend this year – with value growth of 21% (against a non-Easter week in 2022).
NIQ’s data also shows that there was a 4.5% increase in visits to stores, although this is down from last month (7.1%). As a result, the online share of FMCG spend dipped to 10.8%, down from 11.1% last month.
In terms of retailer performance, M&S (+14.5%) continued to perform well, with its seasonal ranges proving popular over Easter. Aldi and Lidl also continued to be the fastest-growing retailers, and all retailers were back in growth over the 12 weeks to 22 April.
Ahead of this weekend’s Coronation celebrations, NIQ research found that 20% of households intend to buy extra or special groceries during this time, with 15% intending to buy memorabilia.
Sales at supermarkets topped £2.7bn during the Jubilee week last year, a 10% increase above the year-to-date average. With this in mind, sales for the Coronation week are expected to reach similar levels.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, commented: “With food inflation hitting 15.7% in April and top line growth falling back a little, this suggests that some shoppers may have held back some spend before and after Easter to afford the Easter celebration. Inflation will continue to lift value growth, but the ongoing trend for shoppers to buy fewer items each trip is putting pressure on retailers to attract new shoppers and get more visits to drive overall sales. However, with summer fast approaching and the Coronation this weekend, this could kick start some incremental spend.”
He concluded: “The Coronation will be an event to celebrate, and as we saw over the Jubilee weekend, shoppers celebrated with fizz and teatime treats, so there could be a demand for similar products this year despite shoppers wanting to make savings. This means opportunities for premium own-label products that complement the occasion and meet the price point of consumers. Moreover, beers, wines and spirits could be a footfall driver as people look to commemorate and entertain.”
NAM Implications:
- 15% inflation means 15%…
- But it feels more to the consumer in the aisle.
- In these circumstances, increased promotions & loyalty card discounts are proving ‘too little to help’…
- Meanwhile, discounters thrive in a time made for them.
- And businesses that can are pinning their hopes on the Coronation.
- Watch this space…
