Warm weather fuels 5.5 per cent sales growth at UK supermarkets

Warm weather and household buying ahead of summer holidays accelerated sales growth at UK supermarkets in August, although No. 3 player Asda continued to struggle, industry data showed on Wednesday.

Market researcher NIQ said sales at UK supermarkets grew 5.5 per cent year-on-year over the four weeks to Aug. 10, against growth of 3.6 per cent in last month’s report.

It said the data, the most up-to-date snapshot of UK consumer behaviour since the July 4 national election, showed the largest jump in sales so far this year, and was aided by a short heatwave. Ice cream sales soared 38 per cent, mineral water sales jumped 32 per cent and soft drink sales were up 14.3 per cent.

Suncare sales jumped 49 per cent and sales of hayfever remedies were up 42 per cent as consumers spent more time outdoors and made purchases ahead of summer vacations.

Echoing data from rival market researcher Kantar last week, NIQ said online grocer Ocado (OCDO.L) enjoyed the fastest growth over the 12 weeks to Aug. 10 with sales up 14.3 per cent, followed by Marks & Spencer (MKS.L) with sales increasing 10.7 per cent.

Market leader Tesco (TSCO.L), No. 2 Sainsburys (SBRY.L), discounter Lidl and Waitrose also gained market share.

But Asda was the laggard. Its sales fell 6.4 per cent and it lost 1.3 percentage points of market share over the year.

Earlier this month, Asda reported a 5.3 per cent fall in second quarter sales and its chairman, veteran retailer Stuart Rose, told the Telegraph newspaper he was “embarrassed” by the group’s performance.

NIQ said last month that food price inflation was running at 2.3 per cent, higher than Kantar’s latest reading of 1.8 per cent.

It said the online channel’s share of grocery spend over the four-week period was 12.8 per cent, up from 12.5 per cent this time last year.