Total till sales in the UK grew by 4.7% in the four weeks ending 4 October 2024 – up from 4.0% last year – buoyed by lower inflation and seasonal spending, according to NielsenIQ.
As shoppers look towards Halloween and Christmas, general merchandise sales have grown for the first time in 12 months, at 0.2% compared to the same period last year.
Overall, FMCG growth across the total store was 1.4%.
Habits
A generally warm September and strong first week in October helped boost sales, while wet, autumnal conditions dampened spending as October wore on.
NIQ also reported a continuation of evolving shopper behaviour, as more people embarked on more shopping trips during the week, opting for smaller baskets.
The average spend was £18.62 per trip – 4% lower than last year thanks to easing inflation.
NIQ’s latest data shows UK households shopping for groceries almost five times a week, visiting eight different grocery stores with volumes up 1.1%.
Swings in categories saw confectionery leading the way in terms of value growth in the four-week period, with a jump of 11% compared to last year.
Fresh produce increased 8.5%, fish and poultry 5.7% and health and beauty 5.4%.
Wet weather hurt other categories, such as beer, wine and spirits, which saw a decrease of 1.8% and soft drinks which grew marginally at 0.1%.
There was also a 16% increase in cough, cold and flu medications, as well as a 10% increase in vitamins and dietary health as shoppers tried to stay healthy in the cold weather.
‘Still Need A Catalyst To Spend’
In terms of supermarkets, online retailer Ocado once again saw the most growth at 15.9% followed by Marks & Spencer at 12.4%.
Speaking about the results, NIQ UK’s head of retailer and business insight Mike Watkins said, “Lower inflation means that the value of the shopping basket is lower than a year ago and even with higher disposable income for some households, shoppers still need a catalyst to spend.
“We are seeing a return of shopping more often as visits to stores are up but shoppers are cherry-picking offers at the moment and perhaps planning for bigger shops later in the month around half term.
“Marks & Spencer attracted 800,000 new shoppers in the last four weeks, and over 12 weeks, 1 in 3 households (33%) are now shopping at M&S for food and drink.
“Retailers will be looking to the traditional advertising campaigns in a couple of weeks’ time to really get shoppers into shopping mode as a way to boost weekly sales in the final eight weeks of the Golden Quarter.
“Shoppers will look to spend more after the half-term holiday and retailers have reasons to be optimistic this Christmas will bring a stronger performance than last.
“Many households are now budgeting for Christmas and slowly stocking their cupboards to help spread the cost.
“Where they are less squeezed with more disposable income they may splash out compared to this time last year.”
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