Sales growth at the UK’s largest supermarkets has hit its highest rate yet in 2010, new figures suggest.
Sales grew by 3.1% across the major multiples in the month to 15 May – the first time this year that a monthly period has seen growth of more than 3%. Across the grocery sector as a whole, growth for the period stood at 2.5%.
"With low but still manageable food inflation feeding into sales since Easter, we can be reasonably confident that we have passed the low point in terms of year on year growth,” said Mike Watkins, senior manager retailer services at Nielsen.
“But shoppers remain fickle and disloyal and are still shifting to retailers who offer the most immediate savings. As a result, promotional spend has been maintained at 35% – the exception being Asda, where spend on offer has fallen a little over the last 8 weeks.”
Asda earlier this year vowed to rein in promotions in order to concentrate on its ‘everyday low prices’ positioning.
Nielsen said consumers were making fewer trips to the shops per month than this time last year, with visits to retailers down by1%, but spending more per trip.
Watkins added: “Cutting down on the number of trips made is a trend we saw at the outset of the recession, when inflation was very high. Our consumer confidence survey saw rising fuel prices top the list of growing consumer concerns and this could account for fewer but larger shopping trips being made."
Read more
Asda sales suffer in ‘disappointing’ first quarter (18 May 2010)
Early Easter puts brakes on April trading - BRC (11 May 2010)
Morrisons’ momentum stalls with slow first quarter (6 May 2010)
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