UK total till sales slowed to 4.0% growth in the four weeks to 2 November, ahead of big spending events such as Black Friday and Christmas, NIQ reported this week.
This was down from 4.7% growth in the previous four-week period.
Despite slowing inflation, NIQ data reveals that shoppers remain cautious when it comes to grocery spending, with spend per visit down by 6% on last year, at £18.67.
The data also shows a slight increase on products purchased on promotion – with sales at 25%, up from 24% – indicating that shoppers are being savvier with their spending.
Some 36% of branded sales came from promotions – up from 35% a year ago – with brands heavily reliant on shopper purchasing in Q4, as products such as beer and spirits continued to push for volume growth.
As shoppers look ahead to the Christmas period, online sales increased by 4.7% in the four-week period, boosting the channel’s market share to 12.9%.
This is up slightly on 12.7% last month.
Confectionery was the fastest-growing category, at 10.7%, as shoppers stocked up for Halloween and began their Christmas preparations.
Almost a million shoppers purchased Christmas chocolate tins in the last four weeks, and 4% of shoppers bought chocolate Advent calendars.
However, shoppers were more cautious with spending on essentials, indicated by subdued growth in the packaged grocery category (1.7%) and a decline in unit growth – down by 0.8%.
Alcoholic drinks – such as beer, wine and spirits – have seen a unit sales decline of 0.4% – a sign that shoppers are holding back in the build-up to the big holidays.
NIQ’s Homescan survey shows that consumers almost expect price reductions and deals in the lead-up to Christmas, likely driving hesitancy at this stage.
‘Cautious’
In terms of retailer performance in the latest four-week period, Ocado, once again, saw the greatest growth, at 16.1%.
Other retailers that grew significantly were Lidl (11.9%) and Marks & Spencer (11.4%).
Also gaining market share were industry leaders Tesco (4.7%) and Sainsbury’s (4.6%).
Speaking about these results, NIQ’s UK head of retailer and business insight, Mike Watkins, said, “Total till sales over the last four weeks have slowed, with shoppers pulling back their spend.
“Shoppers, so far, have been cautious, and it’s evident that they are saving on grocery essentials to be able to afford treats and indulgences, and we have a polarised consumer, with 50% of households continuing to feel pressure on personal finances.
“However, the start of the Christmas advertising campaigns are an opportunity for brands and retailers to entice customers and showcase what’s new and what’s different – and given that it’s possible that many shoppers will ‘dine at home’ more in the next few weeks, we expect this to boost sales in premium private-label food and drink, which NIQ expects to do very well this Christmas.”
Read More: UK Grocery Inflation Edges Higher In Christmas Build-Up – Kantar
