Sales of food and groceries at UK supermarkets increased in the four weeks to 5 October, as shoppers began purchasing more seasonal products for Halloween and Christmas.
According to retail analysts NIQ, total till sales increased at UK supermarkets by 4.7 per cent, up from four per cent in early September.
The increase is likely due to shoppers purchasing items for upcoming seasonal events, as retailers roll out new Halloween and Christmas ranges.
This has resulted in the return to growth of general merchandise (+0.2 per cent) for the first time in 12 months.
NIQ data also shows evolving UK shopper behaviour, as more people embarked on more shopping missions throughout the week. Shoppers opted for smaller baskets, averaging £18.62 in value (four per cent lower than last year), due to falling inflation.
Additionally, UK households are now shopping for groceries almost five times a week, visiting eight different grocery stores on average in that time.
As a result, in-store visits were boosted by 7.6 per cent and outperformed growth in online shopping occasions (2.5 per cent) compared to this time last year.
FMCG volume growth across stores hit 1.4 per cent, and a strong first week of October helped boost sales with wet and cooler conditions dampening mid-month spending.
Ocado maintained its status as the UK’s fastest-growing retailer in the 12 weeks to 5 October, with a growth rate of 15.9 per cent. Meanwhile, M&S was just behind in second place with 12.4 per cent.
Furthermore, NIQ data highlights what shoppers are looking for when choosing where to shop for their Christmas groceries. Some 49 per cent said low prices, 48 per cent said food quality, and 47 per cent said good stock availability. This suggests affordable prices and premium food and drink might be favoured this Christmas.
NIQ’s UK head of retailer and business insight, Mike Watkins, said: “Lower inflation means that the value of the shopping basket is lower than a year ago and even with higher disposable income for some households, shoppers still need a catalyst to spend.
“We are seeing a return of shopping more often as visits to stores are up, but shoppers are cherry-picking offers at the moment and perhaps planning for bigger shops later in the month around half term.
“Marks and Spencer attracted 800,000 new shoppers in the last four weeks, and over 12 weeks, one in three households (33 per cent) are now shopping at M&S for food and drink.”
Watkins added: “Retailers will be looking to the traditional advertising campaigns in a couple of weeks’ time to really get shoppers into shopping mode as a way to boost weekly sales in the final eight weeks of the Golden Quarter.
“Shoppers will look to spend more after the half-term holiday and retailers have reasons to be optimistic this Christmas will bring a stronger performance than last.”
He concluded: “Many households are now budgeting for Christmas and slowly stocking their cupboards to help spread the cost. Where they are less squeezed with more disposable income, they may splash out compared to this time last year.”
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