Grocery Sales Surge Despite General Merchandise Decline

  • UK supermarkets experienced positive growth in February
  • FMCG sales at top four supermarkets increased
  • General merchandise sales declined by -2.9%
  • Sales peaked at +1.6% during the week ending 15th February
  • Valentine’s Day boosted sales in confectionery, bath and shower products, and pre-mixed alcoholic drinks
  • British shoppers spent £104m on fresh cut flowers and £26.5m on gift cards
  • Lidl, Co-operative, Marks and Spencer, and Iceland saw sales growth
  • Online grocery sales increased by 6%
  • Mike Watkins: ‘green shoots of improvement’
  • Consumers are willing to spend on premium food and indulgences for events
  • Coronavirus impact limited so far, but potential for stockpiling household products
  • Multi-purpose surface cleaners up 8% in sales over last four weeks

UK supermarkets witnessed a positive growth in February, with total till sales increasing by 0.7% in the last four weeks, according to Nielsen data. Fast-moving consumer goods (FMCG) sales at the top four supermarkets also returned to growth during the month, despite general merchandise sales declining by 2.9%. The week ending 15th February saw a peak of +1.6% in sales due to wet and windy weather. Valentine’s Day contributed to a rise in categories such as confectionery (+4.8%), bath and shower products (+11%), and pre-mixed alcoholic drinks (+10%). British consumers spent over £104 million on fresh cut flowers and £26.5 million on gift cards, a 13% increase from the previous year. Lidl, Co-operative, Marks and Spencer, and Iceland experienced sales growth. Online grocery sales also rose by 6%. Mike Watkins, Nielsen’s UK head of retailer and business insight, commented that after the lowest growth since 2014 during Christmas, there are signs of improvement. Consumers continue to spend on premium food and indulgences for events like Valentine’s Day and ‘dine-in’ alternatives. However, Watkins warned about potential stockpiling of canned goods and household cleaning products due to the Coronavirus.

Factuality Level: 9
Factuality Justification: The article provides accurate information about UK supermarkets’ sales growth, FMCG sales, Valentine’s Day impact on specific categories, and Mike Watkins’ comments on consumer behavior and potential Coronavirus effects. It cites reliable sources (Nielsen data) and presents a balanced view of the situation.
Noise Level: 3
Noise Justification: The article provides relevant information about UK supermarkets’ sales growth and specific categories’ performance, including Valentine’s Day impact on certain product categories. It also mentions the potential impact of Coronavirus on consumer behavior. However, it does not delve into long-term trends or possibilities, hold powerful people accountable, or provide actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK supermarkets and grocery retailers
Financial Rating Justification: The article discusses financial growth in UK supermarkets, sales figures for various categories of products, and potential impact of Coronavirus on consumer behavior.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses the potential impact of the Coronavirus on consumer behavior and sales.

Reported publicly: www.retailsector.co.uk