M&S and Ocado continue to outperform other retailers in the market, marking significant growth in sales over the past 12 weeks.
- Sales for M&S rose by 10.7% while Ocado saw an increase of 14.3%, according to the latest NIQ data.
- Contrastingly, Asda and Aldi experienced declines in sales, with drops of 6.4% and 0.7% respectively.
- Retailers face challenges ahead with limited seasonal events and changing consumer routines post-summer.
- An increase in total till sales and online shopping reflects evolving consumer behavior during a heatwave.
M&S and Ocado have firmly established themselves as the leaders in retail growth over the past three months, according to recent data from NIQ. Their sales figures, 10.7% for M&S and an impressive 14.3% for Ocado, highlight a period of significant consumer engagement, particularly as households indulged more in summer-related purchases.
On the contrary, two major players, Asda and Aldi, have encountered setbacks with their sales dwindling by 6.4% and 0.7%, respectively. This downturn in their sales figures signifies a challenging period, where they must strategize to reclaim their market position.
As remarked by NIQ UK’s head of retailer and business insight, Mike Watkins, the upcoming retail period post-summer lacks substantial seasonal events, which places pressure on retailers to maintain sales momentum. This situation is exacerbated as consumers adjust to new routines, especially with the impending back-to-school season, thus affecting purchasing patterns.
The retail landscape has witnessed a remarkable rise in total till sales, recording a 5.5% increase in the last four weeks leading up to August 10, 2024. Comparatively, this is a significant leap from the previous month’s 3.6%. The surge is attributed largely to a brief heatwave, which spurred consumer spending.
Furthermore, the shift towards online shopping is unmistakable, with online sales growing by 6.8% and the online share of Fast-Moving Consumer Goods (FMCG) spending growing to 12.8% from last year’s 12.5%. Visits to physical stores have increased by 2.7%, and online orders climbed by 10.5%, indicating a well-rounded growth across the retail spectrum. Convenience store sales have also contributed with a 4.8% rise.
Watkins also noted that despite the positive growth metrics, inflation remains a top concern for nearly a third (29%) of households. Shoppers continue to seek out value, making loyalty and membership programs pivotal in driving consumer spending.
In conclusion, the retail market is navigating a delicate balance between growth and consumer value concerns as it moves into the autumn months.
