Store visits, grocery spend rise as inflation eases: NIQ

Total Till sales at UK supermarkets grew (+5.4 per cent) in the last four weeks ending 23rd March 2024, according to new data released today (3), suggesting that the drop in food inflation (3.7 per cent) compared to 15 per cent a year ago has encouraged shoppers to buy more.

According to NIQ, shoppers also spent more (£20.10) in the last four weeks compared to £19.50 this time last year. Visits to store increased (+1.1 per cent) while there was a slowdown in the growth of online (+3.1 per cent).

NIQ data also reveals that shoppers took advantage of Mother’s Day discounts to celebrate as the event saw supermarket sales increase (+11.9 per cent) during the week ending 9 March. With this in mind, dining in was a popular option for many shoppers.

There was an uplift in sales for produce (+8.5 per cent) and meat, fish & poultry (+8.4 per cent). During this period, the Sunday Roast also became a focal point for retailer promotions with 27 per cent of own label meat, fish & poultry purchased on promotion during the month.

With lower food inflation, packaged grocery (+3.5 per cent), frozen (+3.1 per cent), delicatessen (+3.0 per cent), beers, wine and spirits (+2.7 per cent), bakery (+2.4 per cent) and dairy (+1.8 per cent) all had below- inflation value growths.

However, with shoppers still reining in expenditure, they spent less on household (-0.5 per cent) and pet & petcare (-3.7 per cent) items over the four-week period.

Mike Watkins, NIQ’s UK head of retailer and business insight, said, “As inflation slows, we have seen an improvement in grocery sales volumes during Q1.

“A driver of this was the further fall in food prices in March, together with intense competition amongst the supermarkets looking to drive footfall with promotional offers as seen on Mother’s Day and in the weeks leading up to Easter.

“However, overall consumer spend remains under pressure as many household bills continue to increase above CPI and this is reflected in the continued weak consumer confidence.”

“Encouraging more visits is likely to be the next battleground for retailers now that we have lower inflation.

“The wet and cold weather in the first quarter of the year may have deterred some store visits, but we saw that the early Easter offered some attractive seasonal promotions which encouraged shoppers to buy more. When drier, warmer spring weather eventually arrives this will continue to support volume growths across all channels.”