London, 18 October 2016. Tesco experienced its best year-on-year sales figures for over three years, according to Nielsen retail performance data released today.
In the 12 weeks ending 8 October 2016, the amount of money Tesco took at the tills increased 1.4% versus the same period last year. The last time the increase was higher was the 12 weeks ending 14 September 2013 (+2.3%). This was only the fourth period (out of 39) since then that Tesco has had a year-on-year increase in total sales.
“Tesco was the only one of the ‘Big Four’ to see a year-on-year increase and has started to attract new shoppers again, with two thirds of households visiting them in the last four weeks,” says Mike Watkins, Nielsen’s UK head of retailer and business insight. “They are well placed to benefit from the ‘little-and-often’ mode of shopping behaviour which we see as a key driver of future growth across the entire industry."
It’s been a good period for the UKs leading supermarkets, overall. The four weeks ending 8 October was the third consecutive month of growth in both money taken at the till and volume of goods sold – both metrics up 0.1%¹ versus the same period a year ago.
“Industry growth slowed mid-September as the heatwave ended but picked up again as the warm and dry weather returned, contributing to sales growths of +1.8% for the week ending 8th October,” says Watkins. “This is the best we’ve seen since mid-July and this new momentum has been driven by further price cuts. Whilst currency related cost price increases are casting a shadow over next year, the supermarket price war will keep retail prices in check for the time being. Retailers with a multi-format or multi-channel proposition are well placed to gain new shoppers and incremental spend, particularly when food sales are under increasing pressure from the discounters and, now, Amazon.”
All figures are from Nielsen Homescan Total Till unless otherwise stated
¹Source: Nielsen Scantrack Grocery Multiples
The Nielsen continuous 15,000 GB household panel is geo-demographically balanced and designed to measure household purchasing through a wide range of channels. It includes all food and drink and non-food spend (e.g. household, personal care, clothing, electrical, cards and stationery, toys, music, general merchandise, etc.) It represents the total amount paid (after all coupons and vouchers), found on the till receipt.
The Nielsen scanning service measures total store sales every week by SKU for 20,000 shops across all food and drink trade channels in GB. This uses the actual EPOS data from retailers, thus, Scantrack is the most robust and reliable measure of FMCG sales and is integrated with Homescan for the key indicators of retailer performance. The total market measured is £145bn per annum. ‘Grocery Multiples’ is a defined sub-set of the major supermarkets that also includes all food sales from Marks and Spencer (but excludes Aldi and Lidl). The Grocery Multiples account for over £120bn of all GB food, drink and supermarket general merchandise sales.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world’s population. www.nielsen.com.
Meteor Public Relations
Tel: 020 3544 3570
Mob: 0780 313 1144