Promotions, World Cup and Father’s Day Drive Grocery Sales
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.
All figures are from Nielsen Homescan Total Till unless otherwise stated.
*Source: Nielsen Scantrack Grocery Multiples
**Source: Nielsen Homescan Survey