Sales of food and groceries across UK supermarkets took a hit in the lead-up to 7 September, as consumers began to curb their spending after the summer holidays.
Retail analysts NielsenIQ (NIQ) reported a drop in total till sales growth to four per cent, down from 5.5 per cent in early August.
According to NIQ, the slowdown can be attributed to “cooler weather” and a “return to regular routines for shoppers” after the summer break.
Despite the overall dip, NIQ’s data highlighted a notable rise in online spending, with the share of Fast-Moving Consumer Goods (FMCG) purchases made online increasing to 13 per cent, up from 12.5 per cent a year ago.
Online FMCG sales surged by 6.1 per cent, outpacing in-store sales, which grew by a modest 1.8 per cent, as shoppers found online platforms more convenient for both weekly grocery runs and last-minute meal preparations.
There was also significant growth in fresh food sales, with produce seeing an impressive 8.1 per cent boost and meat, fish, and poultry rising by 5.4 per cent. Packaged grocery sales also increased by 3.9 per cent in value.
Mike Watkins, NIQ’s UK head of retailer and business insight, remarked: “September is closely tied to a change in how we shop following ‘back-to-school’, so retailers typically reinvigorate marketing efforts as customers refocus on new routines as we go from summer to autumn.”
He noted that the cost-of-living crisis remains a significant factor, with around 50 per cent of households stating they are moderately or severely impacted. “This means retailers will need to be laser-focused in offering products and promotions that inspire customers who are budget-conscious, as part of the push for sales growth in Q4.”
Watkins added: “Many households are now budgeting for Christmas and slowly stocking their cupboards to help spread the cost. While promotions are still key, assessing the impact of all media spend is crucial, as this helps retailers and brands gain a deeper understanding of shopper behaviour and purchasing drivers.”
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