Volume sales across the grocery multiples fell by 3.9% in the four weeks to 25 March, with shoppers continuing to switch to the discounters.
The new research by NIQ found that Aldi and Lidl’s combined growth continued to be above 20% over the period.
However, across the sector as a whole, while food inflation soared to 15% last month, total till value sales rose to 11.5%, up from 11.1% in February.
UK supermarkets also experienced a 7% increase in shopping visits to stores, with a 13% uplift in spend in-store compared to the same time last year.
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“Whilst inflation greatly influences shopping behaviour, there is an expectation that we will hit ‘peak inflation’ in the new couple of months,” NIQ UK head of retailer and business insight, Mike Watkins said.
However he added that if this happens, “the big supermarkets are well placed to fulfil new and different mission-based shopping trips.”
“This is helped by having different store formats, as well as the breadth of ranges, typically not available at a discounter. All of this should help volume sales to eventually return to growth after over a year of decline.”
Watkins said that loyalty card savings are also a “win-win strategy as they reward both shoppers and retailers.”
NIQ’s data found that 44% of Brits agree that retailer vouchers and coupons are important in determining where they shop, while 54% said price discounts via loyalty cards were most likely to encourage them to buy a product.
“They give meaningful savings, shoppers prefer the immediacy of the discount and they are a promotional mechanic likely to influence where they shop, while also encouraging category purchasing,” he added.
