christmas supermarket shopper aisle

Shoppers reined in spending ahead of the golden quarter

Supermarket volumes have remained under pressure as cautious shoppers reset ahead of the festive season, according to new data out this morning.

Total till sales at UK grocers increased 4.1% in the four weeks to 4 October, the same level as the previous month, NIQ reported.

It means sales continue to lag behind food inflation, contributing to a 0.5% decline in volumes.

NIQ said the latest figures reflected caution from consumers amid ongoing economic pressures, with many looking to offset household costs following summer spending and the back-to-school rush.

In-store visits jumped by 3.5% in the month as those shoppers sought the best promotional deals, which accounted for 23% of supermarket sales in the four-week period.

“It looks like many households have pressed the reset button after the summer,” said Mike Watkins, head of retailer and business insight at NIQ.

“Shoppers are buying less with unit sales across the total store down 0.5% and value growth remains below food inflation. So, any further increase in inflation would add pressure to discretionary spending this side of Christmas.

“However, many retailers are introducing targeted price cuts to regain momentum after a strong summer, so shoppers should start to see a benefit in their shopping baskets.”

Asda remained the only major supermarket with negative sales growth in the 12-week period as sales fell 5.1% and its share of the market retreated from 12% a year ago to 11%. NIQ noted the decline was hampered by an extension of Rollback in September, driving down average spend per visit.

Ocado was once again the fastest-growing retailer (14.3%), with Lidl (11%) also expanding at a strong rate, while Marks & Spencer continued to perform well with sales growing 10.4%.

Sainsbury’s (5.3%) and Tesco (4.7%) maintained market share boosted by loyalty card prices, which NIQ said were driving more visits.

NIQ also highlighted that the latest data showed UK households were trying to be healthier, with more than half (54%) claiming avoiding ultra-processed foods was “very important” and 52% cooking more meals from scratch.

This trend was reflected in category performance, which showed the fastest-growing category in unit sales (0.7%) was meat, fish and poultry, with value sales also up 5.9%.

In contrast, sales for beer, wine and spirits were weakest of any category, with unit sales declining 2.6% and value sales down 0.6%. Low & no beer also now accounted for 3.9% of beer sales (£219m) for the latest year and is growing by 4.5% in unit sales and 12.1% in value in the latest four weeks.

“There are three emerging trends that could also influence what shoppers put in their shopping basket this Christmas: moderation in alcoholic beverages, seeking out healthier food options and cooking from scratch, and, for those households where weight loss medication is being used, a small (5%) reduction in the value of the grocery spend,” Watkins added.

“The battle for shopper wallets will not only be won on price but on range, quality and increasingly, offering lifestyle choices.”