Shoppers have been prioritising grocery savings to spend more over the Christmas period as supermarket sales growth is less than expected.
According to the latest data from NIQ, total till sales at UK supermarkets grew 8.7% in the four weeks to 4 November.
Volume sales have improved in comparison to this time last year, however remain negative at -0.2%.
The average spend per visit also increased to £20.20, up from £18.60 this time last year, however NIQ said that shoppers remain cautious when spending on food and drinks to preserve spending power ahead of the festive season.
This has impacted sales for general merchandise at major supermarkets with weak sales at -4.9% across items such as toys, clothing and homewares.
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A slowdown in inflation has also led to a decrease in supermarket visits compared to 2022, as shopping behaviours begin to normalise.
However, online sales are up 5.1% with the online share of FMCG remaining at 11%.
Confectionery sales grew the most over the halloween and half term period up 15.3%, followed by meat, fish and poultry up 10.4% and packaged grocery at 10.2%.
Although beer, wine and spirits saw weaker growth up just 2.3%, this is expected to rise as shoppers look to take advantage of promotions on alcohol ahead of Christmas.
NIQ UK head of retailer and business insight Mike Watkins said: “This Autumn, shoppers have been carefully managing their grocery budget and making trade offs with other spending which means the supermarkets will need to get shoppers into the mood to spend as we get closer to December.
“Christmas campaigns will be more important than usual as shoppers are looking for smart savings and good reasons to spend. Many shoppers will be holding out for a few more weeks with the hope of not missing out.
He added: “All eyes will now be on the top two retailers, Tesco and Sainsbury’s to pull off a strong performance in the weeks ahead.
