Asda’s grocery sales dropped 2.3% in the four weeks to 12 July, while the wider UK supermarket sector grew 5.8% — marking the strongest four-week growth since August 2024 outside of peak seasonal times.
While Asda’s footfall increased by 5%, shoppers are visiting more frequently but spending less per trip, reflecting cautious budgeting amid ongoing inflationary pressures.
The heatwaves and major sporting events such as Wimbledon and the Women’s Euros helped drive strong sales of summer staples and impulse buys across other retailers.
Soft drinks sales jumped 21%, frozen food rose 12%, and fresh produce including strawberries saw an 18.5% value increase, with shoppers spending £132m on the fruit alone.
Discounters remain the fastest growing channel, with FMCG sales climbing 8.7% as nearly two-thirds of households shopped at Aldi or Lidl in the latest period.
Among individual retailers, Ocado (+13.1%) and Lidl (+10.3%) led growth, while Sainsbury’s (+5.0%), Tesco (+4.9%) and Waitrose (+4.8%) also reported positive sales increases.
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NielsenIQ head of retailer and business insight Mike Watkins said: “Although Asda’s sales are still declining, visits are up 5% in the last four weeks, signalling some recovery.
“Shopper behaviour remains dynamic as inflationary pressures and the rising cost of eating out could see more consumers cooking at home over the summer.”
“Price competition will remain intense, offering consumers chances to save through loyalty schemes and promotional campaigns, even as the market braces for inflationary challenges.”
NielsenIQ data also highlighted shoppers’ ongoing budget management, with fewer items bought per trip (-4%) balanced by more frequent store visits (+5.6%) as consumers hunt deals across supermarkets and discount chains.
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