Discounters benefit as shoppers cut back after Easter splurge
The discounters benefitted over the last 12 weeks as consumers prioritised saving on groceries after splurging on Easter celebrations.
Discounters benefited over the last 12 weeks as consumers prioritised saving on groceries after splurging on Easter celebrations.
Total till sales growth slowed to 3% across UK supermarkets during the four weeks ending 17 May, down from the 9.6% recorded the month prior, according to NIQ.
The slower growth reflects a reset in spending, as shoppers cut back on groceries after treating themselves during the Easter holidays.
Additionally, the number of items in consumers’ shopping baskets fell compared to last year, reflecting more cautious behaviour amid rising household bills since April, according to the market research firm.
Discounters were the fastest growing channel over the last 12 weeks, rising 6%, as shoppers looked to save.
In-store visits were up 7% year-on-year, while online sales dipped 1.7%, with the channel’s share of grocery sales dropping slightly to 12.3%.
While the number of online orders continued to rise, the average order size shrank, and the number of GB households shopping online every four weeks plateaued this year at 27%.
NIQ head of retailer and business insight Mike Watkins said: “There has been a reset in spending in recent weeks despite the continued good weather which is indicative of a change in shopper behaviour after Easter.
“Shoppers are still prepared to indulge but are holding back spending on some categories such as household, pet and also some frozen foods”.
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He added: “Consumer confidence improved a little in May but it is still negative (-20 according to GFK), and shoppers are uncertain about their personal finances.
“The settled warmer weather gave retailers a boost as shoppers were able to plan more outdoor activities and enjoy alfresco dining, as well as bring forward spend on fresh foods and drinks.
“However, with shop price inflation in food starting to move up (+2.8% in May, NIQ BRC) we expect total till value growth to now remain at around 3% in June.”
Earlier this week, retailers warned of tougher times ahead as rising costs drove up food inflation.
Food inflation increased for the fourth month in a row in May, driven by higher fresh food prices and mounting costs for retailers, the latest BRC-NielsenIQ Shop Price Index found.
However, last week it was also reported that retail sales rose for the fourth consecutive month in April, as consumer confidence in the UK improved.
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