Sales performances in the grocery sector remain sluggish for a second month as shopper caution continues, according to market research company Nielsen.
Year-on-year growth in grocery multiples fell slightly to 2.3% in the four weeks to 20 February, with overall fmcg sales growing at 2.1% compared with last February.
Unit growths, helped by promotions, were 1.1% for the grocery multiples and 0.5% overall for the same period. The figures confirm that any recovery will be long and slow but also reflect the fact that food inflation is much lower than a year ago, so sales values are no longer being driven up by escalating cost prices.
Mike Watkins, senior manager retailer services at Nielsen, said: “The level of promotions in February stood at 34% which is similar to that usually seen at key seasonal trading periods.
“Despite this, sales have remained subdued. Some retailers have been relying on seasonal events such as Valentine’s or Chinese New Year to drive sales up. We expect to see further activity like this and also more use of tactical deals as we approach Mothering Sunday. And thereafter the Easter promotional activity will really kick in.
“At a category level, general merchandise value growths have been buoyant at the grocery multiples, but packaged grocery saw value growths slow against strong 2009 comparisons. Sales of chilled foods, BWS and confectionery have been boosted by meal deals and seasonal promotions.”
