Warm weather and household buying ahead of summer holidays accelerated sales growth at UK supermarkets this month, although Asda continued to struggle, fresh data shows.
Over the last 12 weeks, M&S and Ocado are still the fastest growing, reaping the rewards of households shopping more for summer treats, fresh foods and groceries, according to NIQ.
Tesco, Sainsburys, discounter Lidl and Waitrose also gained market share but Asda lagged behind. Sales at the supermarket fell 6.4% and it lost 1.3 percentage points of market share over the year.
Earlier this month, Asda posted a a 5.3% fall in second quarter sales as its chairman Stuart Rose admitted he was “embarrassed” by the group’s performance.
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NIQ said sales at UK supermarkets grew 5.5% year-on-year over the four weeks to 10 August, against growth of 3.6% in last month’s report.
The firm said this is the largest growth in total till sales recorded so far this year, aided by a short heatwave
Ice cream sales soared 38%, mineral water sales jumped 32% and soft drink sales were up 14.3%. Across all supermarkets, visits to stores increased 2.7% and online orders jumped 10.5%.
NIQ UK Head of retailer and business insight Mike Watkins said: “Retailers will be pleased to have maintained shopper spend beyond Euro 2024, with the warm summer weather adding a boost to sales. However, with almost 1 in 3 household`s (29%) top concern still being inflation and shoppers still looking for value, it’s clear that loyalty and membership schemes remain key to encourage spend.
“As summer draws to a close, retailers will be under pressure to maintain sales growth in the next six weeks. This is especially true with the lack of seasonal events and the back-to-school period, as shoppers settle into new routines. We can also expect more comparative price advertising by retailers as they reinforce price credentials ahead of the all-important Q4 sales build.”
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