Home Business NewsSlowdown in grocery growth at Christmas

Slowdown in grocery growth at Christmas

by LLB Reporter
8th Jan 19 8:19 am

While shoppers visited more supermarkets more frequently this Christmas, in a competitive retail environment, grocery sales growth slowed to +1.8% in the last four weeks, almost half the growth (+3.7%) enjoyed at the same time last year, according to data released by Nielsen.

High levels of vouchering and price discounting encouraged shoppers to โ€˜chase the dealโ€™ and visit a variety of supermarkets throughout December to help them spend less at Christmas. While the number of trips increased, the average spend per visit fell by -3% in the four week period (ending 29th December), compared with an increase of +3% in average spend in December 2017.

In contrast, sales in online grocery increased by +9%, to a 7.5% share of all grocery sales over the last 12 weeks. There was also a continued shift towards the discounters over Christmas, who hit 13.9% market share for the 12 weeks leading up to Christmas. Over the same period, Aldi sales increased by 11.7% and Lidl by 13.6%.

In the all-important last four weeks, there was improved sales growth at Tesco and Morrisons, while momentum at Asda and Sainsburyโ€™s slowed.

As a result of promotional support, some of the best category growths across the four weeks leading up to Christmas were in key festive categories such as Soft Drinks (+5.8%), Confectionery (+5.5%), Crisps and Snacks (5.3%) and Beer, Wine and Spirits (3.8%), with savings being made in Meat/Fish/Poultry (-3.4%) and packaged grocery (-1.1%).

Mike Watkins, Nielsenโ€™s UK head of retailer insight, said: โ€œGrowth slowed this Christmas in comparison to last. We can attribute this to several factors: consumer grocery shopping habits are changing, with shoppers now opting to spend less on doing one โ€˜big shopโ€™, instead preferring more frequent, smaller trips to the supermarket, spreading the cost across multiple retailers to increase choice.

โ€œMoreover, with over half (57%) of consumers not confident about their finances, shoppers are more budget-conscious and the various promotions and price cuts are a response to help them manage their household budget. Finally, the incremental growth continues to come from the key categories of drinks, confectionery and snacks.

โ€œIt was a reasonable but not spectacular Christmas, indicative of how shoppers will now spread their Christmas spending across more retailers and different channels.โ€

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