Supermarket loyalty programs are helping to maintain sales of fast-moving consumer goods in the UK despite persistently high prices, new data from NIQ, NielsenIQ’s new name, has shown.
According to data for the four weeks to October 7, sales at British supermarkets rose 9.1%, in line with inflation of 9.9%. On the scale, sales fell just 0.4%, indicating that buyers are taking advantage of discounts, particularly arising from loyalty programs, according to the NIQ.
“There has been an improvement in volumes bought in the last four weeks” Mike Watkins, Head of Retail & Business Intelligence at NIQ in the UK commented. “This is a reflection of rising pressure on household budgets last year as inflation on fuel, energy and food increased. But it could also be a sign that some buyers are more confident about their personal finances. If so, this should help sustain growth in the next half-year and seasonal campaigns will begin.” Early November will provide further impetus.
Growing online sales
During the rationalized period, sales at physical stores increased by 8.1%. According to NIQ, online sales grew by 10.8% and now represent 11% of total FMCG sales in the UK. Those who chose to shop online cited the potential to save money (51%) and time (48%) as reasons for choosing this channel.
Inflation continues to affect many categories such as confectionery (value sales increased by 12%), frozen foods (9.1%) and chips and snacks (9%).
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