🚀 ProPicks AI Hits +34.9% Return!Read Now

Britain's September heatwave boosts grocery sales -NIQ

Published 19/09/2023, 08:01
© Reuters. A shopper looks amongst a partially empty fruit and vegetable display in an aisle at a Sainsbury's supermarket, as Britain experiences a seasonal shortage of some fruit and vegetables, in London, Britain, February 26, 2023. REUTERS/Toby Melville/File phot
TSCO
-

By James Davey

LONDON (Reuters) - Sales growth at British supermarkets picked up in September, reflecting an unseasonal heatwave, industry data showed on Tuesday.

Market researcher NIQ said the total value of UK grocery sales rose 10.3% year-on-year in the four weeks to Sept. 9, having been up 7.2% in its August report when wet weather held back sales growth.

NIQ highlighted strong sales of meat, fish and poultry as well as salad vegetables.

It noted that sales volumes in the week to Sept. 9 were up 2.1% - the first increase since early May, suggesting improved consumer willingness to spend.

The NIQ data going into September provides the most up-to-date snapshot of UK consumer behaviour.

Britain's consumers have largely defied high inflation and rising borrowing costs to keep up their spending in 2023, but there are signs that the economy is weakening.

NIQ said there was a polarisation of purchasing power.

Its survey data showed 44% of UK households were impacted only a little or not at all by the increased cost of living yet 56% of households were moderately or severely affected.

Echoing data from rival market researcher Kantar last week, NIQ said discounters Aldi and Lidl were again the fastest growing grocers over the 12 weeks to Sept. 9, with sales up 19.6% and 16.6% respectively, giving a combined market share of 20.2%.

© Reuters. A shopper looks amongst a partially empty fruit and vegetable display in an aisle at a Sainsbury's supermarket, as Britain experiences a seasonal shortage of some fruit and vegetables, in London, Britain, February 26, 2023. REUTERS/Toby Melville/File photo

Market leader Tesco (LON:TSCO) and Marks & Spencer were the only other retailers to grow share.

Looking ahead, NIQ forecast total grocery sales growth of around 7% in the fourth quarter and volume growth at food retailers in December.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.