Total sales in UK supermarkets have seen sustained growth (+9.1%) in the last four weeks ending 7th October 2023, boosted by competitive loyalty scheme discounts.
According to new data from retail analysts NIQ, this figure is slightly down from +10.1% growth in September, and is in line with retail food inflation (+9.9%).
In-store sales increased (+8.1%) but were behind online (+10.8%) as consumers returned to usual shopping patterns in September.
In terms of retailer performance, Aldi and Lidl remain the fastest growing retailers over the last 12 weeks, although sales remain strong at Tesco (+9.5%) and Sainsbury’s (+8.9%), with both retailers having more visits than the same time last year.
Warm weather towards the end of September and early October have also seen some seasonal categories achieve an uplift in sales.
NIQ data shows that shoppers are purchasing more fruit, vegetables and salads with the category seeing volume sales increase (+3.6%). In particular, there was a boost to unit sales for raspberries (+35%), strawberries (+33%), and vine tomatoes (+20%).
However, some categories continue to feel the effects of inflation with confectionery value sales of (+12%) followed by frozen (+9.1%) and crisps and snacks (+9.0%).
Data from NIQ also reveals that visits to stores were only up +1.6% as the back to school period led shoppers to return to their usual shopping patterns. As a result, there was a slight boost to online grocery sales, with the channel’s market share returning to 11% of FMCG sales in the same period.
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NIQ’s UK Head of Retailer and Business Insight, Mike Watkins said: “Our latest data indicates that the online grocery channel is back into sustainable growth, with sales up 7.3% over 12 weeks.
“Ocado has grown market share of the online channel helped by increased marketing activity and the investment in price matching against Tesco including promotions and Clubcard prices. These seems to be resonating well with shoppers.
“There has been an improvement in volumes purchased over the last four weeks.
“This is a reflection that this time last year the pressure was growing on household incomes as inflation was accelerating in fuel, energy, and food.
“But it may also be an indication that some shoppers are now feeling more confident about their personal finances.
“If so, this would help sustain growth over the forthcoming half term period and may give a further boost in early November as seasonal advertising campaigns start.”
The news comes as the British Retail Consortium (BRC) found that UK food prices fell for the first time in almost two years in September as supermarket competition has stepped up.
