Recent data highlights a slowdown in UK grocery sales amidst looming holiday pressures.
- Sales growth in UK supermarkets has decelerated to 4.0% from the previous month’s 4.7%.
- Price-conscious consumers are saving by reducing spending on grocery essentials.
- Ocado and Lidl emerge as the fastest-growing groceries with significant gains.
- Asda faces challenges with a decline in sales and market share.
Recent data reveals that UK grocery sales growth has decelerated, with a noticeable shift as consumers prepare for the financial demands of Black Friday and Christmas. From 4.7% in the previous period, sales growth slowed to 4.0% year-on-year in the four weeks leading up to 2 November.
Mike Watkins, head of retailer and business insight at NIQ UK, observed that shoppers are exercising caution, focusing on saving for occasional indulgences rather than essential grocery spending. He noted a divide in consumer behaviour, with half of the households feeling financial strain.
In contrast, Ocado and Lidl have experienced substantial growth, with increases of 16.1% and 11.9% respectively in the 12 weeks to 2 November. M&S follows with an 11.4% rise, while major players like Tesco and Sainsbury’s recorded market gains of 4.7% and 4.6%.
Asda, however, continues to trail behind with a reported decline of 3.5% in sales alongside a 1 percentage point drop in market share over the year. In response, Asda announced a £13 million investment to extend store hours in anticipation of increased holiday shopping activity, aiming to enhance customer service during the bustling season.
Under the new leadership of Lord Stuart Rose, Asda plans to accelerate its transformation efforts. The supermarket seeks to address these challenges following Mohsin Issa’s reduced involvement in day-to-day operations.
The evolving landscape of UK grocery sales presents both challenges and opportunities as retailers navigate consumer behaviour and market dynamics.
