Spend on UK groceries to hit £10bn in December

In-store FMCG sales grew in November, (+5.7% compared with November 2023 ), overtaking online sales (+0.6%) as shoppers looked for discounts on the shop floor, according to NIQ Homescan Total Till data.

As a result of this, online share of FMCG was at +13.1% compared with +13.4% last year +13.4%.

Additionally, the percentage of sales purchased on promotion increased to 25% from 24% in October.

In terms of category growth, NIQ data shows that sales for the Health & Beauty category grew by 6.9%, likely helped by Black Friday discounts. However, value sales for beer, wine and spirits fell (-3.8%) and there was no corresponding increase in unit sales (-2.5%) compared to a year ago.

Mike Watkins, NIQ’s UK head of retailer and business insight, said: “Sales are going to accelerate in the two weeks up to the 21^st December. The biggest single week will be week ending 21^st December with £6bn being spent at the grocery multiples, which is a third of the four weekly spend in one week. Food retailers can prepare for this late rush starting next week as shoppers will be looking for fresh food, centre pieces for the dinner table and last-minute gifts, including a trade up to premium items”.

Watkins adds: “Last year with food inflation at 7% (BRC NIQ SPI), volumes fell in December 2023 however, this year NIQ expects volume growth of around +1%. Even with 50% of households saying it is important for them to make savings on their Christmas groceries this year, 66% still expect they will spend the same or more than last year (NIQ Homescan Survey) and 38% intend to use points or vouchers saved up. So there are reasons to be cheerful.”