Nine out of ten Britons increasingly keeping tabs on spending: NielsenIQ

Sales volumes at UK supermarkets fell 4.1 per cent year-on-year in the four weeks to July 16, with nine out of ten Britons saying they are increasingly watching what they are spending as they battle a cost of living crunch, industry data showed on Tuesday.

Market researcher NielsenIQ highlighted a 9.4 per cent dip in sales volumes of meat, fish and poultry, an 8.1 per cent fall in household items and a 6.4 per cent decline in packaged groceries, as households sought to manage their shopping budget amid soaring inflation.

Confidence levels among Britain’s consumers are at record lows as wages are failing to keep pace with inflation that hit a 40-year high of 9.4 per cent in June and is heading for double digits.

NielsenIQ said spend per visit, across all channels, was down 5 per cent as shoppers continued to make trade-offs, such as opting to buy smaller packs, delaying purchases or changing the products they buy.

It said 49 per cent of UK consumers are feeling less secure about meeting day to day expenses within the next six months.

“Moreover, a staggering 90 per cent are increasingly watching what they are spending, with 62 per cent saying that food and grocery costs are one of the highest causes of financial concern, second only to the cost of utility bills.”

One fifth of British households had “negative disposable income” last month, with a shortfall between what they earned and what they needed to spend on essentials, supermarket group Asda said on Monday.

NielsenIQ said total sales on a value basis rose 4.4 per cent year-on-year over the four week period, reflecting inflation and the start of a heatwave, which boosted demand for water, ice cream and suncare products. Total sales were up 5.6 per cent in the final week of the period.

Store visits were up 10 per cent year-on-year. The slowdown in online grocery continued with sales falling 10.5 per cent year-on-year, but online’s share of the total UK grocery market was stable at 11.5 per cent.

Echoing data last week from rival researcher Kantar, market leader Tesco was the best performer among Britain’s big four grocers.

Marks & Spencer and discounters Aldi and Lidl were the best performers overall.