Shoppers spent about £1.5bn on soft drinks, ice cream and suncare in the past month at the supermarkets as the UK endured successive heatwaves, according to the latest industry data.
Total till sales at major mults increased 3.1% in the four weeks to 8 August, data from NIQ showed.
It represented a slowdown from the 4.4% growth recorded in the previous four weeks, following the end of the World Cup and the start of the summer holiday season.
Across all supermarkets and convenience stores, sales increased 3.3%, with growth easing off throughout the month as shoppers went on holiday.
Promotional activity remained an important driver of sales, with deals accounting for a quarter of goods purchased. Many World Cup-related promotions continued into August, helping retailers maintain shopper engagement even after the tournament had ended, NIQ said.
Despite the slowdown in August, shoppers continued to buy more, with volumes up 1% and shopping occasions up 2% on last year.
Average spend per visit remained broadly unchanged at £19.61 as shoppers maintained control of household budgets.
However, continued heatwaves helped drive demand for summer categories, particularly soft drinks, frozen food and health and personal care.
Soft drinks was a standout performer in the month, with shoppers spending £1.2bn over the four weeks. Mineral water sales grew 26% in value, flavoured non carbonates rose 22% and ambient fruit juice by 19%.
Consumers also focused on health and wellness drinks, with products featuring ‘hydration health’ stated on pack growing 24% in value compared with the same period last year.
Shoppers also spent £268m on ice cream and £68m on suncare. Together, soft drinks, ice cream and suncare accounted for 45% of total fmcg value growth during the period as consumers made the most of the weather.
The continued hot weather also provided a boost to the convenience channel, with sales increasing 3.6%, marking the channel’s strongest performance in more than a year.
Online grocery continued to outperform the wider market, with e-commerce sales reaching £2.1bn, up 10% in value and 5% in units.
“Growth has inevitably slowed following the peaks created by the World Cup, while the start of the summer holidays has given many shoppers a reason to delay some non-essential spending,” Mike Watkins, head of retailer and business insight at NIQ, said.
“Lower inflation than a year ago is also holding back topline growth. Even so, shoppers were still buying more as the heatwaves continued. However, we have seen a clear change in both where they shop and what they put into their baskets.
“What we have noticed is that shoppers are more willing to treat themselves to affordable indulgences in food and drink, particularly when the weather creates an immediate occasion. Despite this, promotional activity will remain important over the next six weeks, especially in the absence of major seasonal events.
“As the weather becomes more seasonal towards the end of summer and children return to school, shopping baskets will start to reset, so there is the possibility of a short-term return of money-off vouchers to help shoppers save money as well as to encourage more visits.”
Over the latest 12 weeks, Ocado (+17.3%) and M&S (+12.9%) were the two strongest performers, with both retailers gaining market share. Lidl (+8.2%) also maintained strong sales momentum, while Co-op (+7%) benefited from more shoppers and more visits compared with last year.
Sainsbury’s sales also increased 3.6%, closely followed by Tesco (3.2%) and Morrisons (3.1%). Asda continued to trail the market, with sales falling 1.5%.
No comments yet