Supermarket promotions increased 25.3% in the last quarter of 2023 – the highest level in four years, new research has found.
According to NIQ, the jump in promotions helped drive FMCG sales, which jumped 8.4% to £202.2bn in 2023.
NIQ retail services director UK and Ireland Ben Morrison said that he expects grocery retailers will “continue to drive an intense focus on competitive pricing, promotions and loyalty card benefits”.
Towards the end of 2023, sales of private label exceeded those of brands in the UK grocery space, which the data company said came as a result of the cost-of-living crisis changing shopper behaviour.
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Despite slowing inflation, NIQ found that prices in December were still high, up 17% in comparison to the last two years.
However, as shoppers looked to reduce non-essential spend on hospitality and general merchandise in favour of eating at home, food sales were rose 7.6% and fresh food sales were up 9.6% in the last quarter.
Morrison said: “With the cost-of-living crisis dominating headlines and consumer mindsets over the last year, it is no surprise that this impacted consumer spending.
“Despite inflation slowing, shoppers are still impacted by the rise in prices and in 2024 we anticipate they will continue to strive for value and affordable solutions in where and how they shop.”
