Supermarket sales rise as shoppers focus on savings ahead of Xmas

Total till sales at UK supermarkets rose by 3.3% in the four weeks to 29 November, according to new data from NielsenIQ, as households looked to cut costs on everyday items and divert spending towards Christmas treats.The data provider said in-store visits increased 4.5% over the period as shoppers sought promotions, which accounted for 25% of fast-moving consumer goods sales. Some 17% of own-label purchases were made on promotion, up from 16% a year earlier, while the proportion of branded goods bought on offer held at 33%.

NIQ reported that 40% of households plan to use loyalty points and vouchers over Christmas, with almost a quarter intending to shop around for the best prices and promotions.

Fresh food was the fastest-growing category, up by 5.3%. Ambient foods rose 2.6%, supported by higher sales of seasonal ingredients such as chestnuts, almonds and sundried tomatoes. Meanwhile, frozen food sales increased 2.1%, with items including frozen berries and frozen croissants in demand as shoppers looked for longer shelf life and reduced waste.

Confectionery, snacks and soft drinks grew 4.5%. Alcohol sales fell 1% as consumers opted for a more moderate approach to festive drinking.

Ocado remained the fastest-growing retailer in November with a growth of 14%. Lidl and Marks and Spencer continued to post strong gains, rising 9.8% and 9.2% respectively. Sainsbury’s (+5.2%), Waitrose (+4.8%) and Tesco (+4.5%) also recorded growth, with all six retailers expected to finish the year in a strong position.

Looking ahead, NielsenIQ said £5.7bn will be spent during the week ending 20 December, making it the biggest shopping week of the year.

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Shoppers are looking for an affordable Christmas this year and many have been holding back their spend with unit growths across the total store down -0.8%. Instead, they are spending wisely and making focused savings on the weekly shop to be able to buy some treats and indulgences for the family in December. 

“The good news is that sales will now accelerate and over the four weeks to 27th December, we expect almost £20bn will be spent and if so, this would be a growth of around 2.8% on last year.”

He added: “Retailers are showcasing their private labels strongly this year and are supporting their Christmas ranges with attractive offers and promotions. Premium private label is currently the fastest growing segment with a 8% growth in value sales and unit growth of 4% and looks set to gain further category share this Christmas.”