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Slowing inflation, a short heatwave and price cuts helped supermarkets record the biggest boost to sales so far this year, according to new data released this morning.
Total till sales at the UK mults grew 5.5% in the four weeks ended 10 August, up from 3.6% in the previous month, NielsenIQ reported.
Weekly sales hit a 6.6% rise in the week to 3 August thanks to the summer weather heating up, while retailers enticed shoppers with more price cuts following the end of the Euro 2024 football tournament and food inflation eased to 2.3%.
In terms of retailer performance over the past 12 weeks, M&S (+10.7%) and Ocado (+14.3%) are still the fastest growing. Both retailers also experienced significant growth over the past four weeks, with households shopping more often for summer indulgences, fresh foods and also groceries.
Asda saw sales slide 6.4% in the 12-week period, while Morrisons registered growth of 2.1%. Tesco was up 4.8% year on year, with Sainsbury’s growing 5.3% and Waitrose up 5.3%. It was contrasting fortunes at the discounters, with Lidl sales 9.6% higher and Aldi’s dropping 0.7%.
Over the four-week period, NIQ data showed the online channel performed well, with sales up 6.8%, outpacing in-store growth at 3.8%. Online share of fmcg spend grew to 12.8% - up from 12.5% this time last year.
Across all supermarkets, visits to stores increased 2.7% and online orders were up a healthy 10.5%. The data also showed sales in the convenience channel picked up after a poor 2024 so far, with 4.8% growth.
The recent hot weather saw Brits splash out on food and drinks for alfresco dining, with category unit growth up 6.5% for produce, soft drinks (+10.4%) and beer, wine and spirits (+4.7%)
Ice cream value sales soared 38%, as did mineral water (+32%) as shoppers sought refreshments. Suncare (+49%) and hayfever remedies (+42%) also had high value growth, with more time being spent outdoors and households buying ahead for summer holidays. And sales of barbeques doubled compared with last year to more than £1.2m in the past four weeks.
Mike Watkins, NIQ UK head of retailer and business insight, said: “Retailers will be pleased to have maintained shopper spend beyond Euro 2024, with the warm summer weather adding a boost to sales. However, with almost 1 in 3 household`s (29%) top concern still being inflation and shoppers still looking for value, it’s clear that loyalty and membership schemes remain key to encourage spend.
“As summer draws to a close, retailers will be under pressure to maintain sales growth in the next six weeks. This is especially true with the lack of seasonal events and the back-to-school period, as shoppers settle into new routines. We can also expect more comparative price advertising by retailers as they reinforce price credentials ahead of the all-important Q4 sales build.”
Morning update
The FTSE 100 nudged up 0.2% to 8,286.13pts this morning.
Early risers include THG, up 2.7% to 61.8p, Naked Wines, up 2.9% to 52.5p, McBride, up 2% to 129.5p, and PZ Cussons, up 1.8% to 103.2p.
Glanbia and AG Barr are among the fallers, down 3.4% to €15.46 and 1.6% to 630p respectively.
Yesterday in the City
The FTSE 100 fell 1% to 8,273.32pts yesterday.
There were no market updates from fmcg companies but risers included Deliveroo, up 1.3% to 156.1p, and Greencore, up 0.8% to 178.4p, while Ocado led the fallers, down 4.4% to 360.6p, alongside PZ Cussons, down 3.1% to 101.4p.
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