British consumers are increasingly on the hunt for deals as ongoing uncertainty stemming from the Middle East conflict makes them more sensitive to price pressures. The latest figures reveal a significant rise in promotional spending, indicating a shift in shopper behaviour.
Data from Worldpanel by Numerator shows a modest 0.9 per cent increase in take-home grocery sales for the four weeks leading up to April 19, compared to the same period last year. While like-for-like grocery inflation has eased to 3.8 per cent, market analysts note that the full impact of the Middle East conflict has yet to be felt on British supermarket shelves.
Despite this, shoppers are proactively seeking out discounts. Spending on promoted items surged by 7.8 per cent year-on-year over the four-week period, contrasting sharply with a 0.2 per cent decline in spending on full-priced goods.
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, highlighted the public’s concerns: “Concerns about the impact of the Middle East conflict on prices of everyday goods are front of mind for British households. Already feeling the squeeze at the petrol pump, shoppers are responding by turning to special offers in growing numbers when buying groceries.”
The proportion of spending on promotions now stands at 31.3 per cent, a figure that has consistently risen month-on-month since July 2023. This trend is primarily driven by price cuts, with four out of every five pounds spent on promotional items attributed to direct price reductions rather than multi-buy offers, which typically encourage larger basket sizes.
In terms of retailer performance over the 12 weeks to April 19, Lidl emerged as a strong performer, achieving a new record market share of 8.4 per cent, up from 8 per cent a year ago. Its sales grew by an impressive 8.8 per cent, largely due to attracting over half a million new shoppers – more than any other retailer.
Tesco and Sainsbury’s, Britain’s two largest grocers, maintained their sales momentum, reporting respective spending increases of 4.3 per cent and 4.5 per cent at their tills. Aldi saw a 1.2 per cent rise in sales year-on-year, while Iceland’s spending increased by 2.1 per cent.
Interestingly, despite broader inflation concerns, premium-focused retailers also outperformed the overall market. Online specialist Ocado recorded an 11.3 per cent increase in sales, boosting its market share to 2.2 per cent, a 0.2 percentage point rise from last year. Waitrose held its market share at 4.6 per cent with sales up 3.8 per cent, noting that spend per trip grew faster than any other grocer. M&S sales were 7.3 per cent higher compared to the previous year.
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