UK shoppers spent £3.6bn on groceries at convenience stores in last four weeks, says NielsenIQ

Britain's convenience stores recorded a sales rise over the last month, as shoppers continued to be cautious about how much they spent on groceries, according to new data.

NielsenIQ. data reveals that UK shoppers spent £3.6bn on groceries at convenience stores in the four weeks ending 13 August, with the channel accounting for 28.9% of sales within this period.

NielsenIQ reported that over the four week period, total till grocery sales remained strong, with a growth of 4.5%.

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However, this was exceeded by growth of sales at convenience stores, which rose 5.4%.Convenience stores also experienced an uplift in volume sales (2.7%) compared with volume sales at the supermarkets, which declined by 3.8%.

NielsenIQ  reported that over the four week period, total till grocery sales remained strong, with a growth of 4.5%.NielsenIQ  reported that over the four week period, total till grocery sales remained strong, with a growth of 4.5%.
NielsenIQ reported that over the four week period, total till grocery sales remained strong, with a growth of 4.5%.

According to data from NielsenIQ, 21% of the total sales within convenience stores were on fresh foods where value sales increased +13%.

Sales of frozen foods jumped +29% as did produce (+8%) within this channel. Shoppers also purchased more as they sought to socialise and enjoy the warm weather and shop locally. Key category volume growths included ice cubes (+44%), ice cream (+31%) and frozen desserts and cakes (+31%).

A spokesman said: "Across the industry as a whole, the summer holidays increased travel opportunities while the summer heatwave that took place in mid-July and early August encouraged shoppers to visit stores more often, leading to an uplift to in-store visits by 8%.

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However, the boost to in-store visits came at the expense of online sales, which fell by 8.7% and the online share of FMCG (fast moving consumer goods) sales fell to 11.3%, down from 11.5% in July and 12.9% share a year ago.

In terms of retailer performance in the last 12 week period ending 13th August, Aldi maintained a 10% market share, making it the fourth retailer in terms of sales, behind Tesco (26.8%), Sainsburys (13.8%) and Asda (12.6%). Morrisons and Waitrose were the only retailers to experience a sales decline over the 12 weeks, according to NielsenIQ.

M&S sales were up by more than 7% and shopper penetration in the last four weeks reached almost 20% of UK households.

Mike Watkins, NielsenIQ’s UK Head of Retailer and Business Insight, said: “It is inflation which is driving topline sales across the industry, but shoppers continue to be very cautious about how much they spend on groceries, resulting in a fall in volume sales at supermarkets.

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"However, the hot weather over the last few weeks has helped volumes turn positive at convenience stores, with an increase in purchasing of drinks, frozen and fresh foods in particular. Shoppers made extra visits to their local stores when the sun came out and sales at co-ops increased 9% in the last four weeks, making them the fastest growing retailer during the recent hot weather .”

Mr Watkins continued: “The market may have recovered from a low point in March, but we are now seeing the start of ‘peak inflation’ and we anticipate shoppers will need to rein in their spending again after the ‘back to school’ period in a few weeks’ time.

"As inflation continues to bite, retailers that focus on saving shoppers’ money will be the ones that maintain sales momentum and it will those who are most agile and are able to adapt to another change in shopper behaviour that will be able to weather the storm. The battle for loyalty is not going away."

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