Grocery sales increase in February

UK supermarkets saw “positive growth” in February, as total till sales increased to +0.7% in the last four weeks according to new data from Nielsen.

Fast moving consumer goods (FMCG) sales at the top four supermarkets also returned to growth during the month, despite sales in general merchandise declining by -2.9%.

Additionally, whilst the wet and windy weather caused some short-term disruption mid-month, sales during the week ending 15 February peaked at +1.6%. Valentine’s also Day helped to boost sales in a number of categories in the last four weeks, including confectionery (+4.8%), bath and shower products (+11%), and pre-mixed alcoholic drinks (+10%).

British shoppers spent over £104m on fresh cut flowers for Valentine’s Day, £2.3m more than last year, and over £26.5m on gift cards for their special valentine, an increase of 13% over the same period in 2019.

Sales at Lidl remained strong, growing by +10.5%, helped by new store openings since Christmas 2019. The Co-operative (+2.4%), Marks and Spencer (+1.3%) and Iceland (+1.7%) also experienced an increase in sales. Meanwhile, online grocery experienced a growth of +6%.

Mike Watkins, Nielsen’s UK head of retailer and business insight, said: “British grocery retailers will be pleased that since experiencing the lowest growth over the Christmas period since 2014, it appears that we are finally starting to see the green shoots of improvement.

“Whilst consumers remain uncertain about their spending intentions, the results from Valentine’s Day prove that they continue to ‘trade up’ for events and are still willing to spend on premium food and indulgences. In particular, gifting for Valentine’s Day was robust, as was the traditional ‘dine in’ alternatives.”

Watkins added: “Despite dominating headlines, the impact from the spread of the Coronavirus has so far been limited, at this point restricted to a growth in sales for multi-purpose surface cleaners, which are up 8% over the last four weeks.

“However, retailers would do well to keep an eye on this, as there is potential for consumers to begin stockpiling canned goods and other household cleaning products in the weeks to come.”