Olympics feel-good effect boosts UK supermarket sales
The London 2012 Olympics and the eventual arrival of some warm summer weather helped UK grocery retailers enjoy their best four-week period so far this year, in terms of both year-on-year sales and unit growths.
Figures released by global information and insights company Nielsen, showed that aggregate sales growth for the UK’s leading supermarkets during the four weeks ending 18 August was +3.5% higher than the same period a year ago. In addition, unit sales also increased by +1.7% year-on-year – reversing an 18 month trend of declining unit growth.
The general feel-good factor from the Olympics and the better weather also contributed to the strong performance of the ‘sharing’ FMCG categories. In the four-week period, Soft Drinks sales increased +10% in value year-on-year (+8% volume), with Confectionery up +8% (+6% volume), while Crisps/Snacks increased +7% (+6% volume).
However, sales growths in the Ambient Grocery & Household category remained subdued and General Merchandise growths fell back (-0.3% value and -1.4% unit sales), indicating weak underlying consumer confidence.
Explaining the figures, Nielsen’s UK head of retailer insight Mike Watkins said: “Retailers have clearly looked to maximise the sales opportunity around the London 2012 Olympics. Although promotional activity has remained unchanged at 35% of FMCG sales, the continual use of money-off vouchers and coupons has marked a differing approach by retailers this summer. This has helped to increase shopping basket spends and, in return, given shoppers further savings at the checkout. Tesco, in particular, had some very attractive offers during July and August which will have helped to increase the frequency of shoppers’ visits.”
Regarding the individual grocery retailers, Watkins added: “The Tesco sales recovery we first saw last month has continued and Tesco has now held market share at 29.1% over the last 12 weeks. Discounters continue to grow sales faster than other food retailers, while Waitrose outperformed with a stellar sales growth of +12% in the four weeks to 18 August – helped by shoppers spending more per visit on food and drink – making them this period’s winner across the supermarket sector.”
