Supermarket sales rise 5.5% amid summer holidays boost

Total Till sales at UK supermarkets has seen a 5.5% increase in the last four weeks ending 10 August 2024, up from 3.6% in the previous month, according to new data released by NIQ. This is the largest growth in Total Till sales recorded so far this year, which was aided by a sales boost due to a short heatwave when weekly sales growth week ending 3 August hit 6.6%. Moreover, as Euro 2024 ended, retailers continued to entice shoppers by offering more price cuts and also maintaining promotional spend at 25% of sales purchased. Waning food price inflation also helped, after falling to 2.3%. Over the four-week period, NIQ data revealed that the online channel performed well with sales up 6.8%, outpacing in-store growth at 3.8%. Online share of FMCG spend grew to 12.8%, up from 12.5% this time last year. Across all supermarkets, visits to stores increased +2.7% and online occasions (orders) were up 10.5%. NIQ data also highlighted that sales in the convenience channel also picked up after a poor 2024 so far, with a 4.8% growth. The report stated that category purchasing was helped by the return of hot weather. With alfresco dining, the value sales of Produce improved 11.8% (unit growth 6.5%) and with a mini heatwave, Soft Drinks were the fastest growing supercategory at 14.3% (unit growth 10.4%). Sales of BWS recovered with value growth of 5.4% (unit growth 4.7%). Additionally, ice cream value sales soared 38% as did Mineral Water (32%) as shoppers sought refreshments. Suncare (49%) and Hayfever remedies (42%) also had high value growth with more time being spent outdoors and households buying ahead for summer holidays. And sales of barbecues doubled compared with last year to over £1.2m in the last four weeks. Lastly, in terms of retailer performance over the last 12 weeks, M&S (10.7%) and Ocado (14.3%) are still the fastest growing supermarkets. Both retailers also experienced significant growth over the last four weeks with households shopping more often for summer indulgences, fresh foods and also groceries. Mike Watkins, NIQ’s UK head of Retailer and Business Insight, said: “Retailers will be pleased to have maintained shopper spend beyond Euro 2024, with the warm summer weather adding a boost to sales. However, with almost 1 in 3 households' (29%) top concern still being inflation and shoppers still looking for value, it’s clear that loyalty and membership schemes remain key to encouraging spending. “As summer draws to a close, retailers will be under pressure to maintain sales growth in the next six weeks. This is especially true with the lack of seasonal events and the back-to-school period, as shoppers settle into new routines. We can also expect more comparative price advertising by retailers as they reinforce price credentials ahead of the all-important Q4 sales build.”