Shoppers focusing on grocery, visiting stores more seeking discounts: NieslenIQ

Shoppers are focusing on core grocery essentials in November and avoided more discretionary Christmas items, market researcher NielsenIQ has said.

It said total sales on a value basis grew 7.6 per cent in the four weeks to December 3 year-on-year, masking a drop in volumes when accounting for inflation.

“With double digit food inflation, shoppers will be spending more to buy less this Christmas,” Mike Watkins, NielsenIQ’s UK head of retailer and business insight said.

He said consumers were wasting less food, shopping for fewer items but visiting stores more often and taking advantage of savings being offered by retailers’ loyalty schemes.

Shoppers can save a third of the increased price for a typical shopping basket by buying private labels, lower priced items or different pack sizes, Watkins added.

The researcher highlighted a value growth lift for categories such as dairy, up 13.9 per cent, frozen food, up 11.9 per cent and soft drinks, up 10 per cent.

It also noted 12.7 per cent value and 3.6 per cent volume rises in crisps and snacks sales, which soccer World Cup celebrations likely helped.

However, sales of beers, wines and spirits declined 1.5 per cent and 3.6 per cent on a value and volume basis, reflecting comparison with the beginning of the Omicron variant of COVID-19 last year which boosted the drink in the home market.