Supermarket sales slowed year on year after Easter as shoppers became cautious about spending, according to NIQ.
An earlier than usual Easter contributed to a 0.2% decline in total till sales at the major grocers in the four weeks to 18 April, while unit sales dropped by 3.6%, according to the analytic company’s latest market data. Store visits fell by 4.7%.
Over 12 weeks to the 19 April, Ocado grew sales the fastest, by 14% year on year, followed by Lidl, the fastest-growing bricks & mortar supermarket, whose sales were up 8.7%. M&S (+6.8%) maintained strong growth.
Tesco (+3.1%) and Sainsbury’s (+4.8%) also gained market share, and Morrisons sales continued to improve
Asda and Co-op were the only two major grocers to see sales fall year on year, by 3.9% and 1.5% respectively.
NIQ said retailers focussed on seasonal offers across all FMCG to help demand, with promotions accounting for 26% of sales, up from 24% a year ago.
This included Easter meal staples such as fresh lamb and fresh salmon as the meat, fish and poultry super category saw the fastest growth, with an increase in value sales of +3%.
“Shoppers will soon be under pressure from higher inflation so it will be important for retailers and brands to keep working together with relevant promotions to encourage shoppers to spend,” said Mike Waktins, NIQ head of retailer and business insight.
“This will be equally important as we head into another summer of sport, driven by the FIFA World Cup which is only six weeks away. This typically brings a strong feel-good factor among consumers, and with that comes enormous opportunities to capitalise on in the months ahead.”
There was also more demand for fresh pasta and sauces (unit growth +8.4%), fresh dough and pastry (+5.4%) as well as fresh poultry (+3.1%).
Despite the Easter bank holiday celebrations, beer, wine and spirits sales were down (-5.7%) and units also declined (-7.2%). However ahead of the summer season, with events such as Wimbledon and the World Cup, this category is set to see an increase in sales, according to NIQ.
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