Snow slows down grocery sales

Wednesday, 03 February 2010
Following a robust December, sales in the grocery retail sector were subdued in January as a result of the snow.

Nielsen Scantrack reports top line growths for the grocery market for the four weeks to 23 January stood at 2.4% YoY with grocery multiples faring slightly better at 2.6%.

Mike Watkins, senior manager retailer services at Nielsen, commented: "The post-Christmas hangover was longer and deeper this year with snow and ice disrupting shopping patterns. Where shoppers did carry on shopping however, some spending was bought forward into the week ending 9 January as consumers stockpiled.

"As a result, sales in the following two weeks were more subdued. Many seasonal lines also came off promotion and this would have impacted sales. Retailers will need to encourage shoppers to keep spending over the next few weeks to lift momentum."

Watkins continued: "The ‘big freeze' has thrown up some unusual shopping trends. In the three weeks to 16 January, sales of salt increased 128% overall and 185% in convenience stores. Cat litter was widely recommended as an alternative to grit and sales of this jumped 31% during the snowy weeks."

Sales of basics like tea (up 10%), coffee (up 8%) and soup (up 16%) also grew as shoppers stocked up and battened down the hatches. Convenience stores also benefited from shoppers and commuters staying at home and treating themselves to breakfast. Sales of eggs grew 33%, bacon 24%, sausages 33% and hot cereals 39%.

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