August retail data shows a boost in supermarket sales thanks to warmer weather and lower prices
Warm weather, retailer price cuts and falling inflation contributed to the biggest surge in UK supermarket sales seen in 2024, August figures show.
According to new data from analysts NIQ, total till sales grew 5.5 per cent in the four weeks ending 10 August 2024, up from 3.6 per cent the previous month. This, says NIQ, represents the largest total till sales growth recorded so far this year.
A short heatwave in early August, together with further retail price cuts and waning food inflation, were the factors behind the sales growth, NIQ says.
Thanks to the return of warmer weather, alfresco dining pushed up the value sales of produce by 11.8 per cent (unit growth +6.5 per cent), the data found.
In terms of retailer performance over the last 12 weeks, M&S (+10.7 per cent) and Ocado (+14.3 per cent) are still the fastest growing, according to NIQ.
Both retailers also experienced significant growth over the last four weeks with households shopping more often for summer indulgences, fresh foods and groceries, it said.
Mike Watkins, NIQ’s UK head of retailer and business insight, said: “Retailers will be pleased to have maintained shopper spend beyond Euro 2024, with the warm summer weather adding a boost to sales. However, with almost 1 in 3 household`s (29 per cent) top concern still being inflation and shoppers still looking for value, it’s clear that loyalty and membership schemes remain key to encourage spend.”
NIQ data showed that the online channel performed well over the four-week period, with sales up 6.8 per cent, outpacing in-store growth at 3.8 per cent.
Across all supermarkets, visits to stores increased 2.7 per cent and online occasions (orders) were up 10.5 per cent.
NIQ data also revealed that sales in the convenience channel also picked up after a poor 2024 so far, with a 4.8 per cent growth.
Watkins added: “As summer draws to a close, retailers will be under pressure to maintain sales growth in the next six weeks. This is especially true with the lack of seasonal events and the back-to-school period, as shoppers settle into new routines. We can also expect more comparative price advertising by retailers as they reinforce price credentials ahead of the all-important Q4 sales build.”
