- Spending on promotional items at UK supermarkets rose to 23% of all FMCG spend in April exceeding last year (21%) and is the highest level since Dec 2020, driven by increased levels of loyalty scheme discounts
- Brits spent £3.1bn over the Easter weekend – the highest weekly spend this year – but Total Till grocery sales are more subdued (9.7%) for the full four week period.
Sales of items on promotion at UK supermarkets rose to 23% in the last four weeks ending 22nd April 2023, the highest level since December 2020, helped by the increased level of supermarket loyalty scheme discounts, reveals new data, released today by NIQ (previously known as NielsenIQ). 1
Data from NIQ reveals that over the four week period, most categories saw an increase in promotional spend, in particular 51% of branded beer, wines and spirit sales were bought on offer and 27% of own label Meat, Fish & Poultry, tempting shoppers to spend more for Easter. There were also further price cuts on Fresh Meat (Lamb, Beef) for supermarket loyalty card users. 1
Overall, Total Till grocery sales were more subdued, falling back from 11.7% in March to 9.7% over the latest four week period. At the Grocery Multiples volumes were broadly unchanged from last month at -3.8%. However, during the week ending 8th April, helped by sunny weather and the Easter weekend shoppers were prepared to treat themselves. Shoppers spent a total of £3.1bn – the highest weekly spend this year – with value growth soaring to +21% (against a non Easter week in 2022).2
According to NIQ, there was a 4.5% increase in visits to stores, although this is down from last month (7.1%). With this in mind, the online share of FMCG spend dipped to 10.8%, down from 11.1% last month. 1 In terms of retailer performance, M&S (+14.5%) continued to have strong momentum with seasonal ranges inspiring shoppers to spend on indulgent food for family events over Easter. The discounters Aldi and Lidl also continued to be the fastest growing retailers and all retailers were back in growth over the last 12 weeks.
Look ahead to the Coronation
With another bank holiday weekend in sight as the UK celebrates the Coronation (6th May), NIQ data reveals that 20%3 of households intend to buy extra or special groceries during this time, with 15% intending to buy memorabilia as the long weekend brings friends and families together.
Data from NIQ last year revealed that overall sales at UK supermarkets topped £2.7bn during the Jubilee week (week ending 4 June 2022) a 10%2 increase above the year-to-date average. With this in mind, sales for the Coronation week may reach similar levels.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “With food inflation hitting +15.7% in April4 and top line growth falling back a little, this suggests that some shoppers may have held back some spend before and after Easter to afford the Easter celebration. Inflation will continue to lift value growth but the ongoing trend for shoppers to buy fewer items each trip is putting pressure on retailers to attract new shoppers and get more visits to drive overall sales. However, with summer fast approaching and the Coronation this weekend, this could kick start some incremental spend.”
Watkins concludes: “The Coronation will be an event to celebrate, and as we saw over the Jubilee weekend, shoppers celebrated with fizz and teatime treats, so there could be a demand for similar products this year despite shoppers wanting to make savings. This means opportunities for premium own label products that complement the occasion and meet the price point of consumers. Moreover, Beers, Wines and Spirits could be a footfall driver as people look to commemorate and entertain.”
Table: 12-weekly % share of grocery market spend by retailer and value sales % change
Unless otherwise stated all data is NIQ Homescan Total Till
1 NIQ Homescan FMCG
2 NielsenIQ Scantrack Grocery Multiples
3 NIQ Homescan Survey February 2023
4 BRC NIQ SPI April
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