UK supermarkets see sales up 12.3% in May

UK supermarkets experienced a 12.3% uplift in total till sales over the last four weeks ending 20 May 2023, up from 9.7% in April, according to the latest data from NIQ. UK supermarkets (stores over 3000 sq ft) experienced the biggest uplift in sales during the week of the Coronation (+17.6%) as shoppers focussed on celebrating the event and bought extra items, with larger stores able to offer a wider variety of celebratory ranges. Moreover, NIQ data found that over the four week period, there was a 3.8% increase in shopping occasions - across all channels - with a 4.9% increase in visits to stores, as shoppers continued to shop around for the cheapest prices. Brick and mortar stores sales increased by 13.5%, while online sales also increased +5.2%. Meanwhile, data from NIQ revealed that volume sales at UK supermarkets was better over the last four weeks, improving to -2.6% and has slowly improved in every month of 2023 since the low point of -6.9% in January. As a result of the Coronation and bank holiday weekends which allowed for shoppers to celebrate with family and friends, the highest performing categories in terms of value sales over the four week period were bakery (+17.9%), confectionery (+17.9%) and dairy (+16.5%). There was also a lift in discretionary spend which helped to deliver positive volume sales growth in beers, wines and spirits (+0.7%) and crisps and snacks (+0.6%). Mike Watkins, NIQ’s UK head of Retailer and Business Insight, said: “Inflation has been a significant drag on shopper spend, so this year, incremental sales are reliant on a short-term boost from well-activated events rather than regular promotional activity. With 27% of households saying that they buy extra or special items to celebrate an event or occasion,4 this will have helped many prioritise spending for the coronation in early May. "With warmer weather coming up towards the end of May, we can expect to see a further lift to sales in June, particularly at convenience stores where 30% of households now say they shop at once a week or more. The advantage for retailers is that shopper mobility tends to increase over the summer, and with 82% of consumers buying food on the go, this is another reason to visit a store.” He added: “While some parts of the hospitality industry are facing headwinds, there remains a strong consumer demand for dining at home, and shoppers are indulging themselves through quick grocery delivery and enjoying meals and snacks from a diverse range of rapid delivery platforms like Just Eat, Uber Eats, or Deliveroo. Many shoppers are still looking for a special treat now and again, despite the challenges of inflation.”