UK supermarkets have experienced a notable rise in sales amid shifting consumer behaviours.
- An increase in till growth to 4.7% was recorded in the past month.
- Consumers frequent grocery stores nearly five times weekly, reducing basket sizes.
- Seasonal products have spurred sales, reviving general merchandise growth.
- Healthcare product sales are up, while drinks lag behind.
In recent weeks, UK supermarkets have witnessed a marked increase in sales, corresponding with evolving shopping patterns among consumers. The total till growth, a critical indicator of sales, has risen to 4.7% over the preceding month, a notable increase from 4%. This trend highlights a shift away from traditional shopping habits towards a model characterised by smaller, more frequent shopping trips, as evidenced by the average basket value dropping to £18.62. Despite this decrease, there is a 1.4% growth in the overall volume of goods purchased, indicating that customers are compensating with increased shopping frequency.
Data from NIQ reveals a remarkable shift in consumer behaviour, with households now visiting grocery stores almost five times per week and accessing up to eight different supermarket brands. This new pattern underscores a changing landscape in the grocery sector, driven by both necessity and convenience.
The introduction of seasonal products has played a significant role in driving sales, with retailers successfully capitalising on the Halloween and Christmas periods. This has led to a resurgence in general merchandise growth, which has increased by 0.2% for the first time in twelve months, reflecting the impact of strategic stock additions by supermarket chains.
Amid these developments, sales of healthcare products, particularly cough, cold, and flu medications, have surged by 16%, alongside a 10% rise in vitamins and dietary health products. This increase is potentially influenced by the onset of colder weather and a return to educational environments, prompting consumers to proactively manage health. However, it is noteworthy that there has been a weaker performance in the alcoholic and non-alcoholic drinks categories, highlighting a nuanced shift in consumer priorities.
Ocado emerges as the frontrunner in retail growth, recording a 15.9% surge in sales, followed by Marks and Spencer, which experienced a 12.4% increase. Notably, one in three UK households now shop for food and drink at Marks and Spencer, illustrating a significant shift in consumer preferences toward these retail giants. Mike Watkins from NIQ commented on the strategic focus of retailers as they look to boost sales further with upcoming advertising campaigns, aiming to invigorate consumer interest during the critical Golden Quarter.
The ongoing shift in consumer shopping habits presents both opportunities and challenges for UK supermarkets.
