A week of hot summer weather at the end of June, England's advancement to the Euro 2024 soccer championship final, and promotions on branded goods contributed to a rise in UK grocery sales over the last month, according to industry data released on Wednesday.
Market researcher NIQ reported that UK supermarket sales increased by 3.6% year-on-year during the four weeks ending July 13, up from a growth of 1.1% in the previous month's report. This data provides the most recent snapshot of UK consumer behavior published since the July 4 national election, which marked the return of the Labour Party to power after 14 years under Conservative rule.
NIQ noted that while the overall level of promotional spending remained at 25%, approximately 38% of sales for fast moving consumer goods (FMCG) were on promotion, a rise from 33% a year ago. "The weather, events, and increased promotional activity are the three major factors influencing shopper spending. In the last few weeks, all of these factors have been significant," commented Mike Watkins, NIQ’s UK head of retailer and business insight.
During the four-week period, online sales rose by 3.8%, with the channel's share of total sales increasing to 12.9%, up from 12.7% compared to the same period last year. Official data released last week indicated a greater than expected decline in overall British retail sales volumes for June.
Echoing findings from rival market researcher Kantar, NIQ reported that online grocer Ocado experienced the highest growth with sales up by 12.9%, followed by Marks & Spencer with an 8.6% increase in sales. Market leaders Tesco, Sainsburys, discounter Lidl, and Waitrose also saw an increase in market share. However, Asda, the third largest player, lagged behind with a 5.9% decline in sales and a loss of 1.1 percentage points in market share over the year.
