Brits go budget as ready meals replace restaurant dates
Shoppers are opting for own-brand ready meals instead of fancy restaurant dinners in a boost for supermarkets.
Brits are spending more on groceries but getting less for their money, as total till sales at UK supermarkets grew 3.3 per cent in the four weeks leading up to 22 February while the number of units sold fell by 0.8 per cent.
Households spent £58.5m on own-label fresh ready meals during this period, suggesting the cost of living squeeze pushed Brits to stay at home during the Valentine’s Day period, according to data from NIQ.
While shop price inflation is easing, analysts say the recent conflict in the Middle East makes the prospect of another Bank of England cut to interest rates less likely.
Another grocery survey, produced by Worldpanel by Numerator, suggests shoppers spent £39m on high-end supermarket meals in the week of Valentine’s Day alone – seven times higher than in the previous week.
Time-stretched shoppers are increasingly opting to do their food shops online, with sales made through the interest up 9.7 per cent year on year.
More than 18 million online orders were placed in the four weeks before 22 February, according to Worldpanel.
Brits switch to own-brand products
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, said: “More affluent families in London and the Southeast of England are still the most likely to shop for groceries online.
“However, the channel’s appeal is broadening, with shoppers from a wider range of economic backgrounds increasingly drawn to its convenience.”
The draw of budget options is continuing to grow as Brits feel the squeeze, with the gap between own-label unit growth (one per cent) and big-brand unit growth (-2.2 per cent) getting wider, according to NIQ.
As many as 15 per cent of households said they plan to save money by switching to own-label products, while 16 per cent are switching from premium branded products to cheaper labels.
Mike Watkins, head of retailer and business insight and NIQ, said: “Many retailers focused on attracting shoppers with a choice of dine-in deals to capture a bigger share of spend at out-of-home channels, with premium offers such as three courses for two people for £25 setting a new and attractive price point compared to eating out.”