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Market Analysis

UK Grocery Sales Growth Slows in June Due to Wet Weather, Reports NIQ
Amos Simanungkalit · 12.4K Views

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Sales growth at British supermarkets slowed in June, influenced by wet weather, robust sales in the previous year, and lower food inflation, according to industry data released on Thursday.

Market researcher NIQ reported that sales at UK supermarkets increased by 1.1% in the four weeks leading up to June 15, year-on-year. This was a decline compared to the 3.3% growth reported in May and the 12.1% growth seen in the same period last year when Britain experienced an early June heatwave.

This data provides the most recent insight into UK consumer behavior ahead of the national election on July 4.

In June last year, UK food inflation peaked at 14.6%. In contrast, it was at 3.2% in May this year, according to NIQ.

Overall British retail sales also softened this month following a recovery in May, with stores expecting another decline next month, as indicated by a survey from the Confederation of British Industry on Wednesday.

NIQ noted that the wet weather led shoppers to favor online grocery shopping over in-store visits. During the four-week period, in-store sales decreased by 0.9%, while online sales increased by 3.7%, raising the online channel's share of the grocery market to 12.6%, up from 12.2% a year earlier.

The market researcher highlighted strong sales of warming foods, with gravy and stock sales up 28% and soup sales up 21%.

"We remain hopeful that the current warm weather and England’s success at the Euros (soccer championship) may boost sales of drinks and snacks," said Mike Watkins, NIQ’s UK head of retailer and business insight.

Reflecting data from rival market researcher Kantar last week, NIQ reported that online supermarket Ocado (LON) remained Britain’s fastest-growing grocer, with sales up 12.6% in the 12 weeks to June 15 year-on-year, followed by discounter Lidl with growth of 8.0% and Marks & Spencer (OTC) with growth of 7.1%.

Market leader Tesco (OTC) saw sales growth of 4.1%, while No.2 Sainsbury’s experienced growth of 4.7%.

No. 3 Asda was the industry laggard again, with sales falling by 4.9% and its market share dropping by a full percentage point year-on-year.

Sales at No. 5 Morrisons rose by 1.4%, but fell by 1.0% at discounter Aldi, the No. 4 player.

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.

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