Total till sales at UK supermarkets slowed to +7.2% in the past four weeks ending 12 August, new figures reveal.
The NIQ data shows this drop in sales is due to lower inflation, as well as unsettled, unseasonable weather over the summer months, with shoppers visiting stores fewer times (-0.5%) in the past four weeks compared to the same period last year. Shopper caution is expressed in weaking volume sales at the grocery multiples weakening to -3.8% compared to -3.6% in July.
The data shows retailers have further increased spend on promotional activity (23%) compared to the previous month (22.5%) in a bid to ease the effects of the cost-of-living crisis and encourage spending. There have been targeted price cuts by most retailers and loyalty cards used to assist with savings as inflation starts to slow.
The trend for bargain hunting continues with 62% of consumers shopping at discounters in the past four weeks and over 780,000 new shoppers at discounters compared to this time last year.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “Despite lower inflation, most consumers remain pessimistic about their financial situation in the coming three months, with 60% anticipating that they will be severely or moderately impacted by rising living costs.
“With the added concerns of increasing mortgage and rental expenses for many households, it appears that a shift in sentiment may be some time off and as a result, while Total Till growth will continue to decelerate as inflation eases, it will still be difficult for retailers and manufacturers to drive FMCG volume growths”.
