Wettest June on record drowns impact of Jubilee boost, Nielsen reveals

FacebooktwitterredditpinterestlinkedinmailFacebooktwitterredditpinterestlinkedinmail
Nielsen: wettest June dampens retail sales

Nielsen: wettest June dampens retail sales

UK supermarkets have endured the worst early summer trading since 2005, new figures from Nielsen for the 12 weeks to 23 June 2012 reveal.

The wettest June on record drowned strong sales around the Jubilee weekend and despite +12.5% year-on-year growth in the week leading up to the Jubilee, sales growth at the UK’s leading supermarkets across the four weeks ending 23 June 2012 was just +3.8% compared to the same period a year ago, said Nielsen.

In comparison, sales in this four week period were up +3.3% on the previous four weeks ending 26 May 2012, while unit sales grew by +0.3% due to shoppers buying more products at the start of the month.

Nielsen senior manager for retailer services, Mike Watkins, said: “The summer of events including the Jubilee, the Euro 2012 football and the London 2012 build-up, couldn’t prevent the poorest early summer period of sales growth since 2005. There was no sustainable uplift in food sales during June despite these events and promotional discount activity being maintained at 35% of FMCG sales.”

“Although inflation is slowing – down to +3.5% in June on food – weakened consumer confidence continues to holds back spend. However, we have seen some good sales growths in the sharing categories of beers, wines, spirits and crisps and snacks, with households entertaining at home – perhaps driven more by the Jubilee and Euros than by the weather.

“Among the top four supermarkets, Asda and Sainsbury had the strongest sales growth in the last four weeks, +7.5% and +6.2% respectively, compared to the preceding four weeks. However, it’s still the discounters of Aldi and Lidl who are outperforming the market with a collective +31% growth in FMCG sales in the last 12 weeks.”  

Table: 12-Weekly % share of grocery market spend by retailer and value sales % change

 

% share, 12 weeks to

23 June 2012

% share, 12 weeks to

25 June 2011

% sales change vs. same 12 weeks year ago

TESCO

29.0%

29.2%

2.5%

ASDA

16.3%

15.8%

6.6%

SAINSBURY

15.9%

15.8%

3.9%

MORRISONS

11.1%

11.4%

1.2%

CO-OPERATIVE

7.2%

7.5%

-0.8%

WAITROSE

4.2%

4.0%

7.3%

MARKS AND SPENCER

3.5%

3.5%

2.2%

ALDI

2.4%

1.8%

40.9%

LIDL

2.0%

1.8%

14.7%

ICELAND

1.9%

1.9%

2.2%

The figures in the table are based on 12 weeks sales through to 23 June 2012 compared with the same 12-week period in 2011.  Source: Nielsen Total Till, Nielsen Homescan