Supermarket sales slide before Christmas as Brits buy food and put off big ticket items

Sales of general merchandise fell by seven per cent year-on-year in the four weeks to 2 December, as Brits put off spending before cashing in on sales promotions in the run up to Christmas. 

Total till sales growth at UK supermarkets slowed to six per cent in the last four weeks, according to the latest reading from NIQ, down from 8.7 per cent when compared to the same period last month. 

During the period, purchases of meat, poultry and confectionery all surged over 10 per cent. 

However, sales of items such as shoes, clothes and electronics, fell by seven per cent, which NIQ said is “indicative” of shoppers having to save money in the run up to Christmas. 

NIQ said sales on promotional goods grew 25 per cent, the highest levels since February 2020. 

In terms of retailer performance,  Lidl and Aldi remained the strongest contenders with sales up 17.3 per cent and 14.3 per cent respectively.

Mike Watkins, NIQ’s head of retailer and business insight, said: “We know that almost three quarters of households think retailer promotions are important when choosing where to make their grocery shop at Christmas. 

“NIQ research also shows that loyalty points play a significant role in helping shoppers save money over the festive period with over half of shoppers look for personalised loyalty card prices and promotions and 38 per cent cash in loyalty points saved throughout the year.” ³

He added: “The good news is this will help shoppers celebrate the festive season and treat themselves to some premium food and drink and seasonal indulgences but this year value for money will be even more important. 

“The key for retailers is to get the basics right to dish up a successful Christmas; low price, quality, and availability are the top drivers that are important to shoppers when planning where to do their main Christmas grocery shop.”