Consumers saving for Christmas as grocery sales slow

NIQ’s Total Till survey estimated that there had been a 6.8% rise in grocery sales for the four weeks ending 2nd December but noted this was a slower growth rate than the 8.7% seen in the previous four weeks.

Price cuts and promotions were back to pre-pandemic levels, with a 25% increase in promotional activity, up from 23% last year, and 38% of branded sales across all fast-moving consumer goods in the last four weeks were purchased on promotions.

Grocery sales for meat and poultry was up 10.1% and confectionery rose 10.2%, while online grocery shopping (up 8.2%) outperformed growth rates for in-store (up 5.3%), albeit with online accounting for 11.5% of the total market.

NIQ added that a 7% fall in general merchandise sales at major supermarkets was indicative of shoppers having to save money.

The findings are based on data from NIQ’s continuous panel of 14,550 British households to measure household purchasing through major supermarkets intended for in-home consumption.

Mike Watkins, UK head of retailer and business insight at NIQ, said: “We know that almost three-quarters of households think retailer promotions are important when choosing where to make their grocery shop at Christmas.

“The good news is this will help shoppers celebrate the festive season and treat themselves to some premium food and drink and seasonal indulgences but this year value for money will be even more important.

“The key for retailers is to get the basics right to dish up a successful Christmas; low price, quality and availability are the top drivers that are important to shoppers when planning where to do their main Christmas grocery shop.”