Grocery sales surpass £14bn as Christmas promotions hit three-year high

UK grocery sales hit a record £14.6bn over the final three weeks before Christmas, aided by intense discounts and increased promotional activity.

Grocery sales were bolstered by the highest level of promotions seen in three years, according to NIQ, with 27% of all FMCG sales being purchased on promotions.

Total till sales rose 3.2% in the last four weeks ended 28th December.

In-store visits were up 8% according to the marketing research firm, as in-store sales registered a 3.6% uptick year-on-year while online sales dipped 1.7%.

Ocado was the fastest-growing retailer over the last four weeks, up 13.9% in sales. Discount grocery was the fastest-growing channel in terms of sales during the period with sales up 5.5% while convenience retail sales rose 2.4%.

Tesco’s market share grew 4.5% and Sainsbury’s was boosted 3.1%. Meanwhile, Marks & Spencer’s market share rose 6.8%, resulting in its highest ever market share of 4.8%.

Shoppers put fewer items in their baskets, with an average basket value of £21.95, down 4.9% compared to last year.

NIQ head of retailer and business insight Mike Watkins said: “In the last four weeks we’ve seen the highest levels of promotions in the last three years, with 27% of all FMCG sales being purchased on promotion, with branded promotions at 37% of sales.

“This has no doubt helped to boost purchasing over the Christmas period. In particular, this was led by Tesco and Sainsbury’s where promotional spending on FMCG increased to 35% and 34% respectively as these retailers engaged shoppers with big loyalty app savings.”

He continued: “Overall, it was a good Christmas for most food retailers with sales growths in line with the expectations that had been set in the last three months.

“The top-line growths were helped by the return of low inflation but also by shoppers being inclined to buy more in the final week leading up to Christmas Eve.

“However, shoppers still had to spend more money this year on household bills before buying Christmas indulgences and this may have taken the edge off the growth in some other categories such as alcohol and also household.”

Source: Retail Gazette