Cool Weather and Back-to-School Routines Impact Shopping Habits

  • UK supermarket till sales growth slowed to 4% in September
  • Cool weather and return to routines after summer break contributed to the slowdown
  • Online share of FMCG spend increased to 13%
  • Online sales growth for FMCG at 6.1%, ahead of brick-and-mortar shopping at 1.8%
  • 2.2% increase in shopping occasions across all channels
  • Promotional spend maintained at 25% of all FMCG sales
  • Sales for fresh food, produce, meat, fish and poultry increased by 8.1% and 5.4% respectively
  • Packaged groceries grew 3.9%, pet category declined 3%
  • Ocado was the fastest-growing retailer at 15.4%
  • M&S followed with a growth of 12.4%
  • Retailers need to focus on budget-conscious customers for Q4 sales growth
  • Households are budgeting for Christmas and stocking up

Total till sales growth at UK supermarkets slowed to 4% in the four weeks ending 7 September, according to NIQ data. The slowdown is attributed to cool weather and a return to regular routines after the summer break. Online share of FMCG spend increased to 13%, driven by a 1% growth in online shoppers and more shopping occasions (6%). Online sales growth for FMCG rose 6.1%, outpacing brick-and-mortar shopping at 1.8%. There was a 2.2% increase in overall shopping occasions across all channels as customers took advantage of discounts, with promotional spend remaining steady at 25% of all FMCG sales. Sales for fresh food, produce (8.1%), meat, fish and poultry (5.4%) saw a boost, while packaged groceries grew by 3.9%. The pet category declined 3%. Ocado was the fastest-growing retailer at 15.4%, followed by M&S with 12.4% growth. Mike Watkins, NIQ’s UK head of retailer and business insight, said that September is closely tied to a change in shopping habits due to ‘back-to-school’, leading retailers to revamp marketing efforts as customers refocus on new routines from summer to autumn. With 50% of households moderately or severely impacted by cost-of-living increases, retailers must prioritize budget-conscious customers for Q4 sales growth. Households are also stocking up for Christmas.

Factuality Level: 9
Factuality Justification: The article provides accurate information about the growth rates in different categories of supermarket sales, cites data from NIQ as its source, and includes expert commentary on consumer behavior and retailer strategies. It presents facts without any clear signs of sensationalism or opinion masquerading as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about the UK supermarket sales growth slowdown and offers insights into consumer behavior during the back-to-school season and cost of living impact. It also highlights the importance of promotions and understanding shopper behaviors for retailers. The content is focused on the topic and supports its claims with data from NIQ.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the slowdown in growth of UK supermarkets, impacting companies like Ocado and M&S.
Financial Rating Justification: The article talks about changes in consumer behavior and spending patterns in the UK supermarket industry, which can affect the financial performance of these companies and their stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.

Reported publicly: www.retailsector.co.uk www.retailgazette.co.uk