UK supermarkets have experienced a notable rise in sales, driven by a shift in consumer shopping habits towards more frequent, smaller trips.
In the past month, UK supermarkets have witnessed a 4.7% increase in total till sales, up from 4% the previous month. This growth has been attributed to a change in shopper behaviour, where consumers are now making nearly five grocery trips per week, visiting approximately eight different stores.
This behavioural shift has resulted in smaller average basket sizes, with the value dropping to £18.62, marking a 4% decline from the previous year. However, despite the reduced basket size, there has been a 1.4% increase in the volume of goods purchased, indicating more items are being bought overall due to the increased frequency of store visits.
The proliferation of seasonal products, such as Halloween and Christmas items, has further spurred sales, contributing to the first growth in general merchandise sales at 0.2% over the past year. Additionally, the onset of cooler weather and the return to educational environments have influenced purchasing trends, evidenced by a 16% rise in cold and flu medication sales and a 10% increase in vitamins and dietary health products.
Nevertheless, sales in the categories of beer, wines, spirits, and soft drinks have shown weaker performance. Yet, Ocado has emerged as the fastest-growing UK retailer, with a remarkable 15.9% surge in sales. Marks and Spencer follows closely, boasting a 12.4% increase, with one in three households now purchasing food and beverages from the retailer.
According to Mike Watkins, NIQ’s UK head of retailer and business insight, retailers are gearing up for traditional advertising pushes in the coming weeks to further stimulate consumer spending during the crucial ‘Golden Quarter’.”Retailers will be looking to the traditional advertising campaigns in a couple of weeks’ time to really get shoppers into shopping mode as a way to boost weekly sales in the final eight weeks of the Golden Quarter,” Watkins commented.
The shift towards frequent shopping trips is reshaping the retail landscape, offering both opportunities and challenges for supermarkets as they navigate this evolving consumer behaviour.
