- Grocery Sales Slowdown in November: Shoppers delay purchases awaiting festive discounts.
- Sales Increase Slightly but Slower Than October: Supermarket sales rose by 4% in the four weeks leading to early November, down from 4.7% in the previous month.
- Top Performers in the Market: Ocado and Lidl lead with double-digit growth, while Asda sees a decline.
The growth of UK grocery sales has seen a noticeable slowdown as British consumers exercise caution, holding back on spending ahead of Black Friday and the Christmas shopping period. According to recent data from market researcher NIQ, supermarket sales grew by 4% year-on-year in the four weeks leading up to November 2, slightly down from the 4.7% increase observed in October.
Mike Watkins, NIQ’s Head of Retailer and Business Insight in the UK, commented, “Consumers are showing restraint, saving on everyday essentials to afford treats and festive items as the holidays approach.” He highlighted that the UK’s consumer base remains divided, with half of households still feeling financial pressure.
The report also indicated a drop in general merchandise sales, which fell by 1.4% in value terms, with volumes down 5.5%. However, some retailers are experiencing robust growth despite the broader slowdown. Online retailer Ocado and budget supermarket Lidl topped the charts with impressive growth rates of 16.1% and 11.9%, respectively, in the 12 weeks up to early November. Marks & Spencer followed with a notable 11.4% growth.
In contrast, supermarket giant Asda saw a 3.5% decrease in sales, along with a 1% decline in market share, prompting Asda’s chairman, Stuart Rose, to acknowledge the challenges, noting that the company had “lost the plot” but remained optimistic about potential improvements.
Meanwhile, Tesco and Sainsbury’s, two of the market leaders, both experienced modest growth, with Tesco sales up 4.7% and Sainsbury’s rising by 4.6%. Both retailers are optimistic about a strong performance for the Christmas season, banking on a late surge in festive spending.
As shoppers wait for key seasonal discounts, grocery retailers are preparing for an expected uptick in sales, positioning themselves for a competitive holiday period.
Source: (Investing.com, Reuters)
