UK supermarkets maintain growth

In the four weeks to 27^th January, grocery shopping increased by 1.3% year-on-year after Christmas, suggesting that shopper behaviour has normalised as food inflation has slowed, according to NIQ.

There was a 6.8% increase in spending on online groceries as the channel maintained its share of FMCG sales ahead of in-store shopping, which increased by 5.3% within the four-week period.

January saw growth in sales of fresh meat (+11%) and fresh poultry (+10%) alongside less expensive food options such as frozen chips (+15%), frozen fruit (+14%) and treated and prepared meat products (+13%).  Sales were up for dried vegetables and pulses (+23%), rice and grains (+22%) and herbs and spices (+20%).

Mike Watkins, UK head of retailer and business insight, NIQ, said: "Shopping visits increased again in January and was helped by the return of smaller baskets after the big trolley spends in December. In addition, many households were moderating spend as paying off Christmas bills takes priority. To put this in context shoppers spent 24% less on food and drink in January compared to December.”

Data is from NIQ’s Homescan Total Till.

Watkins added: “As we look ahead and sentiments and shopper behaviour change, we expect to see the trend of managing overall basket spend continue even as inflation continues to slow, with Easter and warmer weather in spring giving the next boost to FMCG spend.”