Promotions, Online Shopping, and Value Driving Retailer Performance

  • Total till sales at UK supermarkets slowed by 6.8% in the last four weeks due to shoppers saving for Christmas.
  • Promotional activity increased by 25%, with 38% of branded sales and 16% of private label purchases made on promotions.
  • Online grocery shopping market share reached 11.5% due to value sales growth.
  • Meat and poultry (+10.1%) and confectionery (+10.2%) saw the fastest growth in sales.
  • Sainsbury was the best performing supermarket among the ‘big four’ with a 9.5% increase.
  • Lidl and Aldi continued to show strong growth at 17.3% and 14.3% respectively.
  • M&S and Ocado also experienced steady growth at 12.8% and 11.7%.

Total till sales at UK supermarkets slowed by 6.8% in the last four weeks due to shoppers prioritizing savings for the festive season. NIQ’s data reveals a significant increase in promotional activity (25%) and 38% of branded sales across all FMCG goods were purchased on promotions, with 16% of private label purchases also benefiting from discounts. Online grocery shopping market share reached 11.5%, up from 11.2% last month. Meat and poultry (+10.1%) and confectionery (+10.2%) experienced the fastest growth, while general merchandise sales fell by 7%. Sainsbury led the ‘big four’ supermarkets with a 9.5% increase in performance. Lidl and Aldi maintained their positions as the fastest-growing retailers at 17.3% and 14.3%, respectively, followed by M&S (+12.8%) and Ocado (+11.7%).

Factuality Level: 8
Factuality Justification: The article provides accurate information about the slowdown in growth of UK supermarket sales, reasons behind it, and specific categories’ performance. It also includes relevant data from NIQ and expert opinions on consumer behavior during the festive season.
Noise Level: 4
Noise Justification: The article provides relevant information about the UK supermarket sales trends during the Christmas period, including promotional activity, online vs in-store shopping, and retailer performance. It also offers insights into consumer behavior and preferences. The article stays on topic and supports its claims with data from NIQ. However, it could benefit from more analysis or discussion of long-term implications and potential consequences for the industry.
Financial Relevance: Yes
Financial Markets Impacted: Supermarkets and related companies
Financial Rating Justification: The article discusses sales trends in UK supermarkets, which can impact the financial performance of these companies and may affect their stock prices. It also mentions specific retailers’ growth rates, which could influence investor decisions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.

Reported publicly: www.retailsector.co.uk