Sales of items on promotion at UK supermarkets rose to 23% in the past four weeks ending 22 April 2023, the highest level since December 2020, helped by the increased level of supermarket loyalty scheme discounts, new data reveals.
Data from NIQ, previously known as NielsenIQ, shows that most categories saw an increase in promotional spend over the four-week period. In particular, 51% of branded beer, wines and spirit sales were bought on offer and 27% of own-label meat, fish and poultry, tempting shoppers to spend more for Easter. There were also further price cuts on fresh meat for supermarket loyalty card users.
Overall, Total Till grocery sales were more subdued, falling back from 11.7% in March to 9.7% over the latest four-week period. However, during the week ending 8 April, helped by sunny weather and the Easter weekend, shoppers were prepared to treat themselves. Shoppers spent a total of £3.1bn – the highest weekly spend this year – with value growth soaring to +21% (against a non-Easter week in 2022).
There was a 4.5% increase in visits to stores, according to NIQ, although this is down from last month (7.1%). With this in mind, the online share of FMCG spend dipped to 10.8%, down from 11.1% last month.
The NIQ data reveals that 20% of households intend to buy extra or special groceries for the coronation bank holiday, with 15% intending to buy memorabilia as the long weekend brings friends and families together.
Data from NIQ last year revealed that overall sales at UK supermarkets topped £2.7bn during the Jubilee week (week ending 4 June 2022) a 10%2 increase above the year-to-date average. With this in mind, sales for the Coronation week may reach similar levels.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “With food inflation hitting +15.7% in April and top-line growth falling back a little, this suggests that some shoppers may have held back some spend before and after Easter to afford the Easter celebration.
“Inflation will continue to lift value growth but the ongoing trend for shoppers to buy fewer items each trip is putting pressure on retailers to attract new shoppers and get more visits to drive overall sales. However, with summer fast approaching and the Coronation this weekend, this could kick start some incremental spend.”
Watkins added: “The coronation will be an event to celebrate, and as we saw over the Jubilee weekend, shoppers celebrated with fizz and teatime treats, so there could be a demand for similar products this year despite shoppers wanting to make savings. This means opportunities for premium own-label products that complement the occasion and meet the price point of consumers. Moreover, beers, wines and spirits could be a footfall driver as people look to commemorate and entertain.”
