Total till sales at UK supermarkets continued to grow (+6.6%) in the four weeks ending 27 January, reflecting a slowdown in food inflation, new data reveals.
Data from NIQ reveals a volume growth (+1.3%) in grocery shopping after Christmas, compared to last year when inflation was in double digits, demonstrating that shopper behaviour is normalising as inflationary pressures reduce.
NIQ data also reveals a reduction in promotional activity (23%), down from 26% over Christmas.
With wetter weather and storms over January keeping shoppers at home, NIQ data reveals an increase (+6.8%) in online grocery spend as the channel maintains share (11.2%) of FMCG sales ahead of in-store shopping which only grew (+5.3%) within the four week period.
Shoppers also prioritised simple winter meals, saving money and avoiding waste to keep costs down. This included a growth in sales of fresh meat (+11%) and fresh poultry (+10%) alongside less expensive food options such as frozen chips (+15%), frozen fruit (+14%) and treated and prepared meat products (+13%). Shoppers were also willing to adopt a flexitarian diet, with a growth in sales of dried vegetables and pulses (+23%), rice and grains (+22%) and herbs and spices (+20%). The data also showed that sales of beer, wine and spirits are back in growth (+7.3%).
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “Shopping visits increased again in January and was helped by the return of smaller baskets after the big trolley spends in December. In addition, many households were moderating spend as paying off Christmas bills takes priority. To put this in context shoppers spent 24% less on food and drink in January compared to December.”
