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UK Supermarket Sales Slow Down As Consumers Scale Back Spending: Study Finds

By Dayeeta Das
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UK Supermarket Sales Slow Down As Consumers Scale Back Spending: Study Finds

Sales at UK supermarkets slowed in the last four weeks to 2 November 2024 as shoppers scaled back their expenditure ahead of Christmas and Black Friday promotions later in the month, according to NIQ.

Spending per visit on groceries declined 6% compared to last year and stood at £18.67.

Sales for items on promotion increased 25%, with 36% of branded sales coming from promotions - up from 35% a year ago.

Mike Watkins, NIQ’s UK head of retailer and business insight, stated, “Total Till sales over the last four weeks have slowed, with shoppers pulling back their spending.

“Shoppers so far have been cautious and it’s evident that they are saving on grocery essentials to be able to afford treats and indulgences and we have a polarised consumer with 50% of households continuing to feel pressure on personal finances.”

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Online sales increased 4.7% in the four weeks boosting the channel's market share to 12.9%1 up from 12.7% last month.

Confectionery emerged as the fastest-growing category over the four weeks (up 10.5%), as shoppers stocked up on sweets for Halloween and Christmas.

Almost 1 million shoppers purchased Christmas chocolate tins in the latest four weeks and 4% of households bought chocolate advent calendars, data showed.

Other Findings

The packaged grocery category witnessed subdued growth (up 1.7%) as shoppers cut down expenditure on essentials.

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Shoppers reduced their purchase of beer, wine and spirits with a unit sales decline of 0.4%, indicating that shoppers are holding back until close to the festivities.

Watkins added, “The start of the Christmas advertising campaigns is an opportunity for brands and retailers to entice consumers and showcase what’s new and what’s different.

“And given that it’s possible that many shoppers will ‘dine at home’ more in the next few weeks, we expect this to boost sales in premium private label food and drink, which NIQ expects to do very well this Christmas.”

Read More: Three Themes Set To Shape The Christmas Shopping Period In Europe

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NIQ Homescan survey revealed that price reductions and promotions are almost expected by consumers ahead of Christmas, with vouchers with money off the most popular followed by product promotions.

Cautious consumer sentiment has also put pressure on general merchandise with sales value down (-1.4%) and unit growth (-5.5%), data showed.

Ocado emerged as the fastest-growing retailer in the latest 12 weeks, followed by Lidl, Marks & Spencer, Tesco and Sainsbury’s.

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