Supermarket sales improve tentatively after restaurant reopening hit
UK supermarket sales improved slightly in the last four weeks as Brits stocked up on beers for the Euros and picnic items to enjoy in the sun, according to new data released today.
Total till sales over the four weeks ending 17th July were down 1.3 per cent on the same period last year, new data from consumer behaviour researchers NielsenIQ showed.
This marks a slight improvement on the last couple of months, when supermarket sales were down 2.4 per cent year-on-year in June and 2.7 per cent in May, as Brits made the most of newly reopened hospitality.
“The year-to-date growth among the grocery multiples is currently at 3 per cent, which shows promise for the upcoming summer period,” said Mike Watkins, NielsenIQ’s UK head of retailer and business insight, who predicted staycations and (hopefully) good weather would improve sales further in the next month.
Outdoor socialising when the sun did shine shifted Brits’ spending to picnic foods, as delicatessen food sales grew 9.5 per cent over the four week period, while store cupboard dry food sales fell 9 per cent.
Euros celebrations provided a boost to UK supermarkets across food and drink, as sales increased by 1.5 per cent in the week to 17th July – the highest weekly growth in over a month.
Sales of lager grew by 22 per cent in the same week, as Brits stocked up for the Euro 2020 final on the previous Sunday.
Aside from the boozy finals weekend, however, overall alcohol sales declined by 6 per cent compared with the same period last year.
Watkins warned there were also “possible headwinds” on the horizon, as consumers increase the proportion of their spending on recreation and leisure and four in ten households begin to watch their spending more than before the pandemic.
But looking ahead, if economic activity recovers to pre-Covid levels, total till spend will “normalise” further “with the full year growths probably in the range of -1.5 per cent to +1.5 per cent,” Watkins predicted.
Although online supermarket sales fell by 3.6 per cent in the four-week period compared with the year before, they maintained their market share of 13.4 per cent of all fast moving consumer goods (FMCG), similar to the 13.6 per cent a year ago.
This “suggested that post-pandemic ‘new normal’ shopping behaviours are starting to emerge”, NielsenIQ said.
Discounters Lidl and Aldi continued to lead the market in terms of growth, with sales increasing by 18.0 per cent and 6.4 per cent respectively.
Marks & Spencer was also a strong picnic choice for Brits, as sales grew 6 per cent.
Of the “big four” supermarkets, Sainsbury’s performed best with sales down 1.1 per cent on the same period last year – which drove its market share up 14 per cent.