UK supermarkets experienced a 12.3% rise in Total Till sales over the four weeks ending 20 May 2023, as shoppers have been steadily increasing how much they spend.
According to retail analysts NIQ, this is a rise from the 9.7% recorded in April 2023, and comes as a result of continued inflation combined with events such as the coronation and bank holiday weekend.
The data revealed that UK supermarkets experienced the biggest uplift in sales during the week of the Coronation (+17.6%) – as shoppers focused on celebrating the event and bought extra items – and there was a boost to sales across all channels, with online experiencing its highest growth in sales (+5.2%) since April 2021.
However, inflation and cost-of-living is still a priority for shoppers, as own-label products have demonstrated a strong performance in terms of value sales, with a growth rate of +14.1% surpassing the growth achieved by branded products, which recorded a growth rate of +7.1%.
In March, a YouGov survey found that a third (34%) of Brits buy mostly own-brand goods from supermarkets, with another third switching between these products and branded alternatives.
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Moreover, the NIQ data shows that there was a 3.8% increase in shopping occasions over the four weeks to 20 May – across all channels – with a 4.9% increase in visits to stores, as shoppers continued to shop around for the cheapest prices.
There was also a lift in discretionary spend which helped to deliver positive volume sales growth in beers, wines and spirits (+0.7%) and crisps and snacks (+0.6%).
“Inflation has been a significant drag on shopper spend, so this year, incremental sales are reliant on a short-term boost from well-activated events rather than regular promotional activity,” NIQ’s head of retailer and business insight, Mike Watkins said.
“With 27% of households saying that they buy extra or special items to celebrate an event or occasion, this will have helped many prioritise spending for the coronation in early May.”
Watkins added: “With warmer weather coming up towards the end of May, we can expect to see a further lift to sales in June, particularly at convenience stores where 30% of households now say they shop at once a week or more.
“The advantage for retailers is that shopper mobility tends to increase over the summer, and with 82% of consumers buying food on the go, this is another reason to visit a store,” he said.
