Supermarket till sales continue to feel the impact of online buying brought about by the pandemic, with a four per cent fall last month.
A new study indicates that online sales also fell almost 20 per cent from last year, as the cost of living crisis continues to change consumer habits.
The report by NielsenIQ indicates a 4.1 per cent drop in till sales over March, which was the lowest growth in 2022 so far. It also said the sale of FMCG (fast-moving consumer goods) dropped by more than five per cent in that time.
It indicates that there may be a return to growth as Easter approaches, while also suggesting rising inflation and the cost of living is pushing people away from major chains, and towards local labels and products.
While there was a fall in growth for till shopping, some retailers still gained market share, with Marks & Spencer experiencing almost 9.5 per cent in till sales growth over the last three months, shortly followed by discount stores Lidl and Aldi.
“It’s clear that shoppers are re-evaluating what they spend”, said Mike Watkins, NielsenIQ, UK head of retailer and business insight said. In wake of the pandemic, and with rising inflation looming, “consumers are now increasingly shopping for private label products as part of their coping strategy”.
“Whilst saving money on discretionary areas such as clothing and eating out are some of the immediate ways that households will economise, this does suggest there could be some impact on grocery shopping as the cost-of-living squeeze accelerates.”