Ocado leads as the fastest growing supermarket with a 15.4% increase in sales.
- M&S follows closely with a 12.4% rise in sales over 12 weeks.
- Waitrose shows momentum, attracting more shoppers and increasing sales by 3.9%.
- Discount market share stabilizes at 17.6%, unchanged since February 2023.
- Online FMCG sales rise to 13% of total, driven by increased online shopping.
Ocado has maintained its status as the fastest growing supermarket with a significant 15.4% surge in sales over the past 12 weeks. This robust performance is closely followed by M&S, which saw a commendable increase of 12.4% during the same period, according to the latest data from NIQ.
Waitrose is also on a positive trajectory, with sales increasing by 3.9%. The upmarket supermarket has successfully attracted a larger number of shoppers, resulting in higher visitation compared to the previous year.
In the broader retail landscape, the discounter market share has remained stable at 17.6%, maintaining the same level recorded in February 2023. Despite the static market share, consumers continue to capitalize on promotional opportunities, with discounts accounting for 25% of all Fast-Moving Consumer Goods (FMCG) sales.
There has been a slowdown in total till sales growth at UK supermarkets, with a 4% increase in the four weeks leading to 7 September, down from the earlier rate of 5.5% in August. This deceleration is attributed to the cooler weather and the resumption of regular shopping routines following summer holidays.
The share of FMCG spend online has risen to 13%, up from 12.5% the previous year. This growth is driven by a slight increase in online shoppers and more frequent online purchasing occasions, leading to a 6.1% rise in online FMCG sales, outpacing the 1.8% growth observed in brick-and-mortar stores.
Sales of fresh food experienced an upswing, with produce sales growing by 8.1% and meat, fish, and poultry enjoying a healthy 5.4% increase. Packaged grocery sales also saw a modest rise, with value increasing by 3.9% and unit growth at 1.8%.
Mike Watkins, NIQ UK head of retailer and business insight, notes that September marks a shift in shopping habits as consumers transition from summer to autumn. This seasonal adjustment sees retailers intensifying marketing initiatives to align with new consumer routines.
With a notable portion of households feeling the impact of increased living costs, retailers face the challenge of appealing to cost-conscious shoppers while striving for sales growth in the fourth quarter. Watkins emphasizes the importance of optimizing media spending to better understand purchasing behaviors and shopper motivations.
The current retail landscape reflects significant growth in sales and evolving consumer behaviors as supermarkets adapt to changing market dynamics.
