UK Shopper Spend Slows In February: Nielsen
Growth in the UK grocery sector slowed in February, with sales rising 2.5% for the month, compared to 3.3% in January, according to Nielsen.
The research firm said that the slowdown in growth can be attributed to a drop in spend per visit, with consumers increasingly cautious with their spend due to Brexit and economic uncertainty.
“Over the last four weeks, the average spend per visit has fallen to £16.30 from £16.70 this time last year, down 2%, as a result of the resurgence of ‘little and often’ shopping behaviour but also due to price cutting by supermarkets,” said Mike Watkins, Nielsen’s UK head of retailer insight.
Nielsen did note however, that despite declining growth, online continues to attract customers, with the UK online grocery market valued at £8.5 billion last year.
Marks & Spencer’s recently-announced tie up with Ocado is an indication of how the retailer is seeking to extend its shopper reach into the online channel.
“For online, it’s the ease of the shopping experience and the chance to discover new and exciting products that differentiates a retailer and engages new shoppers,” he said.
“Future retail growth will come from meeting lifestyle needs rather than being reliant on the location of a store.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.