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Promotions, World Cup and Father’s Day Drive Grocery Sales

By
FMCG and Retail | 26-06-2018

Promotions around the World Cup and Father’s Day helped to drive a +1.5% increase in grocery sales over the last four weeks. This is against a heatwave a year ago which boosted growth by +4%.

Another factor in the sales increase was strong performance from convenience stores with sales up +1.8% as more shoppers did ‘top-up’ shops locally for fresh foods and last-minute items in the warm weather. Sales at larger grocery multiples were up +0.6%, while volume was up +0.1%.*

World Cup promotions have been in full swing over the last four weeks with 27% of all grocery value sales coming from special offers. Branded beverages, in particular, were heavily promoted with 43% being sold on promotion. In the week ending 16 June, sales of gin and tonic water rose +46% and +21% respectively, as did colas and flavoured carbonates up +5% and +4%.  

When it came to Father’s Day, 15% of households claimed to buy extra items (compared with 19% for Mothering Sunday), making it the seventh most-celebrated event and on a par with Valentine’s Day.** The week ending 16 June also saw an uplift in gifting categories such as DVD/BluRay (+9%), spirits (+6%), rotisserie chicken (+6%) and greetings cards (+6%).  

Over the twelve weeks ending 16 June, Asda had the most improved year-on-year sales growth of the top four supermarkets (+2.7%) followed by Co-operative (+2.1%), displaying the trend towards convenience. Iceland had the best growth figures overall (+3.4%), outside of the discounters.

Shoppers are benefiting from simpler pricing strategies, easier to understand promotions and overall everyday low prices. Tesco’s commitment to replace their Brand Guarantee in a few weeks’ time follows this trend we see across the industry and similar decisions taken by Sainsbury’s and Morrisons some time ago.

promotions-world-cup-and-fathers-day-drive-grocery-sales

Notes
All figures are from Nielsen Homescan Total Till unless otherwise stated.
*Source: Nielsen Scantrack Grocery Multiples
**Source: Nielsen Homescan Survey

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