Recent data shows a notable decline in Asda’s sales growth compared to other UK supermarkets for the month leading up to Christmas promotions.
According to the latest figures from NIQ, Asda’s sales growth has lagged as total grocery sales began to decelerate last month. Specifically, for the four weeks ending on 2 November 2024, overall till sales at UK grocers slowed to 4%, down from 4.7% in the preceding month. This deceleration reflects consumer caution as households held off on spending in anticipation of festive and Black Friday promotions.
Amidst a backdrop of easing inflation, the average spending per visit saw a noticeable decline, down 6% from the previous year to £18.67. Mike Watkins, NIQ UK’s head of retailer and business insight, commented, ‘Total till sales over the last four weeks have slowed, with shoppers pulling back their spend.’ This reflects a broader pattern where consumers are conserving on essential groceries while preparing to indulge in festive treats, highlighting a divided consumer sentiment as 50% of households continue to face financial pressures.
Among various categories, confectionery emerged as the fastest-growing segment, experiencing a 10.5% increase as consumers stocked up for Halloween and upcoming Christmas festivities. Conversely, there was a slight downturn in the sales of beer, wine, and spirits, with a 0.4% decline in unit sales, indicating a tendency to reserve purchases until closer to the festivities.
As the Christmas advertising campaigns commence, brands and retailers are seizing the opportunity to captivate consumer interest by introducing novel and distinctive products. There’s a visible trend indicating that many shoppers might prefer dining at home more often in the upcoming weeks, potentially boosting sales in premium private label food and drinks, which are anticipated to perform well this festive season.
In terms of competitors, the report identifies Ocado as the leading growth performer with a 16.1% increase in sales over the past 12 weeks. Lidl and M&S also showed significant growth with 11.9% and 11.4% increases, respectively. Tesco and Sainsbury’s showed modest increases of 4.7% and 4.6%, respectively, managing to gain market share. Contrastingly, Asda experienced a 3.5% decline in sales and a corresponding one percentage point drop in market share over the last year.
As the festive season approaches, the competitive landscape among UK supermarkets is shifting. Asda’s recent performance highlights the challenges faced in a dynamic consumer market where caution and strategic spending prevail. Despite the current slowdown, the anticipated seasonal trends suggest opportunities for recovery and growth.
