Sales at the UK supermarkets reached a record breaking £4.8bn during the week ending 23 December 2023, up 4.3% year-on-year, new research reveals.
The data from NIQ also reveals that volumes increased by 1.2% as shoppers traded up at this busy time of year.
NIQ data shows that UK shoppers took advantage this year of a full week of trading with the opportunity for extra supermarket visits up to Christmas Eve. Over the four weeks to the 30 December and across all channels, shoppers spent £657m more on groceries compared with the same period last year.
The data reveals that shoppers focused on essentials and topped up with affordable treats, including crackers and savoury biscuits (+15%), ice cream (+15%), pickles (+15%) and olives and antipasti (+15%). There was also growth in crisps and snacks (+6.3%) and soft drinks (+7.4%).
However, sales uplifts for beers, wines and spirits (BWS) were disappointing, including Champagne (value sales -5.8%), port (-4.3%), sparkling wine (-2.7%), and spirits (-2.0%).
Promotions increased to 26.5% of FMCG sales which is a 4 year high which is unusual during December and is due to price competition remaining intense with price cuts and extended loyalty scheme discounts on seasonal items.
Across all of FMCG, private label growth in December remained strong at +7.7% and ahead of brands (+3.9%) with retailers highlighting the quality as well as the value of premium private label items.
NIQ’s data shows that over the four-week period ending 30 December 2023, online sales (+7.7%) were just ahead of bricks and mortar stores (+5.5%), with 27% of households shopping online in the four-week period. This was a similar figure (27.6%) to Christmas 2022, but for context, up on 2017 (18%), which was the last time Christmas Eve was on a Sunday. Overall, online’s share of FMCG spend was 10.6%, a small increase on the 10.4% recorded over the same period last year.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “Shoppers mixed and matched across the month to take advantage of the convenience of an early online delivery or click-and-collect and then store visits for last minute shopping for fresh and festive food for family, friends and the new year celebrations. However, with shoppers spending around 18% more on their groceries than two years ago, many were mindful of overspending, economised early in the quarter and overall bought less volume in eight out of the 12 weeks.”
Watkins added: “With low everyday pricing and loyalty card savings now key strategies across the industry, retailers will need to refocus on how they differentiate and offer other reasons to choose their stores to help sales growth and rebuild store equity. Yet promotions will still be important for footfall and sales growth, particularly after two years of falling FMCG volumes due to inflation.”
