Grocery sales in the UK registered a 0.5% decline in the last four weeks despite warm weather and the cricket World Cup, the latest data from Nielsen has revealed.
Consumer spending also saw a decline compared to the same period last year, when it grew 4.5% driven by a hot summer and the soccer World Cup.
'A Sign' Of Change
Mike Watkins, Nielsen’s UK Head of Retailer and Business Insight, said that the drop in sales is a sign that consumers are starting to change how they spend.
"Consumer confidence index in Q2 fell to the lowest level since Q4 2014 (down to 94 from 98 in Q1 2019), with 52% of consumers revealing that they are now switching to cheaper grocery brands to save money, compared to 44% in Q1 2019."
Media Promotions
Retailers are increasingly investing in strengthening brand credentials through advertising to attract consumers’ attention, the study found.
This year, in the period between April and the end of June, expense on TV and press activities by retailers increased 11.6% year-on-year to £72.76 million (€81.13 million).
Watkins added, "This year, retailers have had to work harder to drive shoppers to spend, and the increase in press and TV advertising spend proves that retailers are looking at more creative ways to achieve this."
The Top Spenders
Aldi and Lidl were among the top spenders dishing out almost £12m each, with Lidl introducing a new campaign in early June focusing on ‘Big on’ as a part of its messaging.
Meanwhile, Tesco and Sainsbury’s spent £8.1 million (€9.03 million) and £4.7 million (€5.2 million) respectively, on campaigns focussing on a larger advertising push to mark their respective 100 and 150 anniversaries, the study pointed out.
Sainsbury’s also launched new branding ads that highlight community involvement, with the tagline ‘Proudly doing our bit since 1869’.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
