NIQ has predicted almost £20bn will be spent on groceries in December, just 2.8% up on last year, as 40% of UK households plan to use saved loyalty points and vouchers to maximise savings.
Despite still representing a Christmas sales surge, December’s anticipated figures would represent a slowdown in growth from the four weeks to 29 November, when till sales accelerated slightly to 3.3%.
Shoppers have already been taking advantage of increased promotions, with in-store visits up 4.5% as they chased down deals in November.
“Shoppers are looking for an affordable Christmas this year and many have been holding back their spend with unit growths across the total store down -0.8%. Instead, they are spending wisely and making focused savings on the weekly shop to be able to buy some treats and indulgences for the family in December,” said NielsenIQ head of retailer and business insight.
own-brand retailers Lidl and Marks & Spencer have benefitted from shoppers’ anxiety for value, up 9.8% and 9.2% at tills respectively, though Ocado’s premium offering has continued to find an increased audience with 14% growth.
Sainsbury’s, Waitrose, and Tesco also gained market share.
“Retailers are showcasing their private labels strongly this year and are supporting their Christmas ranges with attractive offers and promotions. Premium private label is currently the fastest growing segment with a 8% growth in value sales and unit growth of 4% and looks set to gain further category share this Christmas,” Watkins added.
Fresh foods, up 5.3%, sped ahead of ambient (2.6%), with seasonal favourites such as chestnuts (28%), almonds (11%) and sundried tomatoes (19%) all helping shoppers elevate their festive meals with premium ingredients.
frozen berries continued to enjoy their hot streak, up 15%, though unhealthier treats likewise enjoyed a winter uplift as confectionery, snacks and soft drinks rose 4.5% – though beer, wine and Spirits fell 1%, reflecting consumers’ continued shift away from booze.
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