Talking Retail Grocery and product news for independent retailers
Despite inflation accelerating and shoppers purchasing less, declining volumes have stabilised at -5.4% against -5.6% in the last 12 weeks.
Across the industry, average spend per visit increased to £18.50 compared to £18.20 last month but is still lower than the same period last year when it was £18.70.
In terms of channel performance, discounters Aldi and Lidl are best performers with 7.7% followed by convenience stores at 4.3% and supermarkets 3.1%.
Reflecting on the wider slowdown in discretionary spending due to inflation, general merchandise value sales fell -1.2% with volumes down -7.6%.
Nevertheless, value growth across FMCG for the week ending 5 November was much more robust at 5.1% at the grocery multiples and the strongest it has been since July’s record-breaking temperatures.
The weather remains unseasonably warm and impulse categories continue to have good momentum with crisps and snacks (volumes +2.9%) and soft drinks (volumes +0.6%) the only categories to see volume growth in the last 4 weeks, and with value growths of +13.3% and +9.6% respectively.
Consumers are expected to make a trade off this year to enjoy the festive period and for many, Christmas will be cushioned by spending more on food and drink at home.
NielsenIQ found that visits to stores are up 7% compared to this time last year.
Asda is the fastest growing retailer over the last 12 weeks ending 5 November with sales growing by 7.6%, Sainsburys (5.1%) and Tesco (4.8%). Morrisons and Waitrose are the only retailers to have sales decline compared to this time last year.
According to NielsenIQ data, online sales share may have reached a turning point as the decline has slowed to just -1.2% compared to -7.8% over the last 12 weeks.
Mike Watkins, NielsenIQ’s UK head of retailer and business insight, said: “There is some better news for retailers and suppliers as shoppers claim they will start to buy some items early for Christmas.
“Our recent consumer survey shows that 30% of shoppers will have started their Christmas shopping this year before mid-October compared to 18% last year. 27% also say they will buy Christmas gifts when they see them in store which suggests a ‘spreading the cost of Christmas’ mindset is ever more important this year as budgets are stretched2.”
