Supermarkets hit by‘seasonal hangover’, says new research | Industry News | TalkingRetail.com

Supermarket sales suffered a seasonal hangover in the four weeks to 22 January, according to data out today by research company Nielsen.

Sales in grocery multiples were hit by the“reality of increasing pressure on consumer pockets” with sales declines of -0.2% year on year.

Sales in the sector declined in the week ending 1 January and only ever improved in the third week of the month (w/e 15 January) as shoppers re-stocked their larders. 

Mike Watkins, senior manager Retailer Services at Nielsen, said:“Price inflation is the main driver of retail growths in January. When looking at volumes being sold we see that sales have actually declined 3.6% year on year in the four weeks to 22 January. 

“There is always a seasonal hangover which follows Christmas but this year it has been particularly marked.  Consumers rely on cupboard stocks built up over the festive season and defer spending until the January pay check comes in.

“But this year, set against a backdrop of price increases on fuel, utilities and food inflation the results are particularly sobering.

“We know from our consumer confidence survey that people are feeling increasing financial pressure and continue to look for ways to make savings on household expenditure. 

“As we look forward into 2011, the grocery sector will feel further obligation to offer value to their shoppers and consumers will begin to consider the affordability of everything they put in their basket,” said Watkins.

Source: Nielsen

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