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11th December 2007, Oxford
‘Christmas spending remains stable with the latest 4 weeks showing growth picking up slightly in the grocery sector at just under +6% compared to the same period last year. Looking at the full quarter, growths tracked at +4.9% YoY over the 12 weeks according to market research company Nielsen.
Mike Watkins, Senior Manager Retailer Services at Nielsen commented, “The top four all improved their market share through aggressive promotions and major Christmas advertising pushes, something we have not seen for quite a while.
“As Christmas falls on a Tuesday this year, shoppers have both Sunday and Monday to make those last minute shopping trips and I expect this to be a key time for retailers to push their indulgent/ luxury offering.”
Watkins continued, “We can already see the seasonal `Asda effect` beginning as more households visit this retailer in the run up to Christmas. This year the larder stocking for traditional groceries is stronger than ever with 6% more households visiting Asda in the last 4 weeks.”
Retailers continue to contain the effects of food inflation with some excellent promotions, and now is a great time for consumers to pick up some excellent bargains.
Watkins added, “Morrrisons continue to have excellent gowths with sales up +7% on the back of a new advertising campaign, good execution of Christmas promotions such as Wines and Beers and a stronger value for money price message.”
Across the grocery multiples in the last 4 weeks general merchandise and seasonal non-food growths were +6.5%, still below the 52 week average of +8% and a refection of the cautious consumer
Liquor sales are holding up well at +7.4% and frozen is back in growth at +1.7%, which is the best YOY since the end of August. Snacks and confectionary sales are up +7.3%, ahead of packaged grocery at +4.4%, as shoppers take advantage of promotions and start to trade up for Christmas.
The next few weeks are critical and it will be interesting to note which retailers will attract the late demand for fresh produce – the battle lines are firmly drawn between the large out of town stores and the high street premium players.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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