UK Supermarkets See Increased Sales and In-Store Visits
- Grocery sales hit a record £14.6bn during the final three weeks before Christmas
- Promotional activity reached a three-year high
- 27% of FMCG sales were purchased on promotions
- Total till sales increased by 3.2% in the last four weeks
- In-store visits rose 8% and online sales dipped 1.7%
- Ocado was the fastest-growing retailer with a 13.9% increase in sales
- Discount grocery channel saw a 5.5% growth
- Convenience retail sales up 2.4%
- Tesco’s market share grew by 4.5% and Sainsbury’s by 3.1%
- Marks & Spencer’s market share reached a record high of 4.8%
- Average basket value decreased to £21.95, down 4.9% from last year
- Shoppers spent more on household bills before Christmas indulgences
UK grocery sales hit a record high of £14.6 billion during the final three weeks before Christmas, thanks to an increase in promotional activities. NIQ reports that 27% of all FMCG sales were purchased on promotion, with branded promotions accounting for 37% of sales. Total till sales rose by 3.2% in the last four weeks ended December 28th. In-store visits increased by 8%, while online sales dropped 1.7%. Ocado experienced the fastest growth at 13.9% in sales, followed by discount grocery with a 5.5% increase and convenience retail rising 2.4%. Tesco’s market share grew by 4.5%, and Sainsbury’s increased by 3.1%. Marks & Spencer reached its highest-ever market share of 4.8%. Shoppers spent less per basket, averaging £21.95, a decrease of 4.9% compared to the previous year. Mike Watkins, NIQ head of retailer and business insight, stated that ‘the highest promotional levels in three years boosted sales during Christmas. Tesco and Sainsbury’s saw promotional spending on FMCG rise to 35% and 34%, respectively, attracting customers with loyalty app savings. Overall, food retailers had a good holiday season, with growth in line with expectations. The increase was partly due to low inflation and shoppers buying more before Christmas Eve. However, this may have affected other categories like alcohol and household items.’
Factuality Level: 8
Factuality Justification: The article provides accurate information about the increase in grocery sales during the Christmas period due to promotions and discounts, mentions specific retailers’ growth and market share changes, and includes relevant quotes from an expert source. However, it ends with unrelated content about H&M, Sports Direct, and Zara which is not directly related to the main topic.
Noise Level: 4
Noise Justification: The article provides relevant information about the increase in grocery sales during the Christmas period due to promotions and discounts, but it could benefit from more analysis of long-term trends or consequences of these decisions on various stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the record grocery sales in the UK during the final three weeks before Christmas, mentioning the growth of specific retailers like Tesco, Sainsbury’s and Ocado. It also talks about promotional activities and their impact on sales. While it doesn’t directly mention financial markets, it provides insights into the performance of various retail companies which could affect their stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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