Grocery sales growth sluggish as bank holidays prompt spending 'hangover'

The late Easter, sunny weather and extended bank holidays prompted shoppers to splash out in the week ending April 23, when year-on-year growth was 19%, the latest Nielsen grocery industry data showed.

However, sales growth then slowed. In the four weeks to May 14 growth was 7% by value and 2% by units.

Nielsen senior manager, retailer services, Mike Watkins said there had been a “spending hangover”.

He said: “By the start of May it was very much business as usual and in the second week of the month growths were back to their sluggish 4% level.

“With the value of promotional spend remaining at about 40% of sales, shoppers continue to be fickle and it’s the combination of inflation and the ongoing high level of promotions that are helping to keep spend per visit higher than this time last year.”

Table 1: 12 Weekly % Share of grocery market spend by retailer and value sales % change