Euro 2016 helped supermarkets to their first sales increase in over a year, new monthly data shows.
Sales of beers, wines and spirits jumped 6.2 per cent for the four weeks to 18 June, whilst crisps & snacks rose 4.2 per cent, according to June figures from retail analysts Nielsen.
Delicatessen sales also rose 3.9 per cent, in part due to the warm end to May, while general merchandise was up 2.9 per cent. Overall the value of sales was up 0.4 per cent compared to the same period a year ago; only the third genuine year-on-year sales rise since the start of 2014.
“It remains a tough trading environment for the big supermarkets but changes made over the last year in lowering prices, less promotions, edited ranges and improved customer service seem to be having an impact, alongside the drop in shoppers buying cheaper grocery brands to save money,” says Mike Watkins, Nielsen’s UK head of retailer and business insight.
Watkins believes that shoppers will continue to benefit from a price war that has brought prices 1.5 per cent lower over the last year.
The effects of the EU referendum decision are less clear.
"Whilst the Brexit decision is unlikely to change shopper behaviour in the short term, we can expect some change in consumer sentiment and, possibly, a return to low inflation next year – should sterling’s depreciation continue and global commodity prices strengthen. However, for now, the battle for market share continues and shoppers will benefit from falling prices at food retailers due to price cuts and the deflationary environment,” Watkins said.
The biggest gainers continued to be discount chains, Aldi and Lidl, whose combined market share hit a record high of 10.5 per cent.
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