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UK Till sales slow to 4% this month, NIQ finds

However, there was a boost in sales for fresh food, including produce (8.1%) and meat, fish and poultry (5.4%)

Total Till sales growth at UK supermarkets slowed to 4% in the four weeks ending 7 September, down from 5.5% in August, according to NIQ. 

New data revealed that the slowdown in growth is likely due to cool weather and a return to regular routines for shoppers after the summer break. 

NIQ data also revealed that the online share of FMCG spend has increased to 13%, up from 12.5% a year ago. This has been driven by a 1% growth in online shoppers, but also more online shopping occasions (6%). 

Online sales growth for FMCG rose 6.1%, which performed ahead of brick and mortar shopping at 1.8% over the past four weeks. Overall there was a 2.2% increase for shopping occasions across all channels as shoppers aimed to take advantage of discounts with promotional spend maintained at 25% of all FMCG sales. 

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Sales for general merchandise were down 4.5% as seasonal ranges changed and shoppers held back spend to focus on grocery shopping instead. 

However, there was a boost in sales for fresh food, including produce (8.1%) and meat, fish and poultry (5.4%). Packaged groceries also grew 3.9%, while the pet category declined 3%.

Ocado remained the fastest growing retailer (15.4%) followed by M&S (12.4%). 

Mike Watkins, NIQ’s UK head of retailer and business insight, said: “September is closely tied to a change in how we shop following ‘back-to-school’, so retailers typically reinvigorate marketing efforts as customers refocus on new routines as we go from Summer to Autumn. With some 50% of households saying they are moderately or severely impacted by the increases in cost of living, this means retailers need to be laser-focused in offering products and promotions that inspire customers who are budget-conscious as part of the push for sales growth in Q4.

“Many households are now budgeting for Christmas and slowly stocking their cupboards to help spread the cost. So whilst promotions are still key, assessing the impact of all media spend is more important as this helps retailers and brands get a better understanding of shopper behaviours and purchasing drivers.”

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