Lidl is the fastest-growing bricks & mortar grocer as Christmas approaches, but M&S is running it a close second, according NIQ’s latest monthly market update.
Lidl’s sales were up 11.6% year on year in the 12 weeks to 30 November, while M&S’s rose 10.6%.
NIQ’s is the second monthly market monitor to put M&S on double-digit growth, after Kantar yesterday said its sales were up by 10.4% in the 12 weeks to 1 December. However, M&S was leading Lidl in Kantar’s data, with the discounter’s sales up 6.6%.
Both also tell a different story when it comes to M&S’s online partner Ocado. NIQ has the online supermarket as the fastest-growing outright, with its sales up 16.2%, while Kantar puts it in 8.7% growth.
Tesco maintained “healthy sales growth” of 5.1%, according to NIQ.
Total till sales growth at UK supermarkets was 3.7% in the four weeks to 30 November 2024, according to NIQ, down from 4.0% in the previous month. This slowdown in growth is likely due to milder weather, Black Friday distraction and shoppers holding out until early December for the big Christmas shop, according to the consumer intelligence company.
In-store fmcg sales grew by 5.7%, ahead of a 0.6% uptick for online as “shoppers actively look for discounts on the shop floor”, NIQ said.
Looking closer to Christmas, grocery spend is forecast to hit £10bn in the two weeks to 21 December.
“Sales are going to accelerate in the two weeks up to 21 December,” said Mike Watkins, NIQ UK head of retailer and business insight.
“The biggest single week will be week ending 21 December, with £6bn being spent at the grocery multiples, which is a third of the four-weekly spend in one week. Food retailers can prepare for this late rush starting next week as shoppers will be looking for fresh food, centrepieces for the dinner table and last-minute gifts, including a trade-up to premium items.”
Watkins added: “Volumes fell in December 2023. However, this year NIQ expects volume growth of around 1%. Even with 50% of households saying it is important for them to make savings on their Christmas groceries this year, 66% still expect they will spend the same or more than last year, and 38% intend to use points or vouchers saved up. So there are reasons to be cheerful.”
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