Total sales across UK supermarkets plummeted 7.2% in the last four weeks ending 12th August 2023, marking the lowest level since January, market researcher NIQ reports.
The company attributed the drop to lower inflation and unseasonable weather over the summer.
Shoppers visited stores fewer times (-0.5%) over the last four weeks compared to the same period last year.
Sales reached their highest point in June, at 12.4%.
Retailers also increased their spend on promotional activity to 23%, up from 22.5% the previous month, on all FMCG goods to encourage shoppers to spend more.
In-store sales maintained stronger growth of 7.9% over online sales (3.8%) during the past four weeks.
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Meanwhile, NIQ found Tesco saw a rise in sales (9.7%) and gained market share over the latest 12 weeks.
The consumer intelligence company’s UK head of retailer and business insight Mike Watkins said:”Despite lower inflation, most consumers remain pessimistic about their financial situation in the coming three months, with 60% anticipating that they will be severely or moderately impacted by rising living costs.
“With the added concerns of increasing mortgage and rental expenses for many households, it appears that a shift in sentiment may be some time off and as a result, while total till growth will continue to decelerate as inflation eases, it will still be difficult for retailers and manufacturers to drive FMCG volume growths”.
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