Talking Retail Grocery and product news for independent retailers
This growth, although slightly down from the 10.1% growth seem in the previous month, is in line with the current rate of retail food price inflation, which stands at 9.9%.
In-store sales increased by 8.1%) but were behind online (up by 10.8%).
Volume sales also continued to improve, with a decline of just 0.4% in the last four weeks, suggesting some shoppers are taking advantage of price cuts from retailers.
This has been encouraged by an increase in the discounts offered by supermarket loyalty schemes, says NIQ.
The data also reveals that visits to stores were up by 1.6% as the back-to-school period led shoppers to return to their usual shopping patterns.
As a result, there was a slight boost to online grocery sales, with the channel’s market share returning to 11% of FMCG sales. Those that have chosen this channel claim to be doing so to save money (51%) and time (48%).
Warm weather towards the end of September and early October also saw some seasonal categories achieve an uplift in sales, including fruit, vegetables and salads.
However, some categories continue to feel the effects of inflation, with confectionery value sales of up 12%, frozen up 9.1% and crisps and snacks up 9%.
Beer, wine and spirits (up 2.2%) continue to have the lowest growth in the last four week period.
However, there was an uptick in sales for beer and cider of 8.8%, and in particular stout, which grew by 19.2%)
This was probably due to consumers purchasing ahead of watching the Rugby World Cup.
Aldi and Lidl remain the fastest-growing retailers over the last 12 weeks, although sales remain strong at Tesco (up 9.5%) and Sainsbury’s (up 8.9%), with both retailers having more visits than the same time last year.
M&S (up 12.6%) has also seen continued growth, benefiting from the warm weather, and Ocado is growing at 9.4%.
Mike Watkins, NIQ’s UK head of retailer and business insight, said: “There has been an improvement in volumes purchased over the last four weeks. This is a reflection that this time last year the pressure was growing on household incomes as inflation was accelerating in fuel, energy, and food.
“But it may also be an indication that some shoppers are now feeling more confident about their personal finances. If so, this would help sustain growth over the forthcoming half-term period and may give a further boost in early November as seasonal advertising campaigns start.”
