Discounts and promotions down in slow start for supermarkets in 2013

Published: 13 February, 2013

The aftermath of Christmas discounts and promotions has caused a slow start to 2013 for supermarkets, according to research.

A drop in the use of vouchers and coupons compared to a year ago, combined with cautious shopper behaviour has caused sluggish value growth according to Nielsen.

Sales value growth for the UK's leading supermarkets during the four weeks ending 2 February 2013 was up 2.2% year on year. For the previous four-week period (ending 5 January 2013), year-on-year sales value growth was 3.7%.

Volume sales stayed flat year-on-year - compared to 0.5% year-on-year increase for the previous four weeks.

Nielsen's UK head of retailer insight Mike Watkins said: "After the promotional and discounting frenzy at Christmas, retailers and consumers both stepped back a little. Although the percentage of the basket purchased "on offer" went back to 33% of sales right after Christmas - which is still high - it's what we've come to expect in recent years as shoppers continue to seek out savings. However, compared to the start of 2012, there has been less use of vouchers, coupons and fuel discounts.

"There were slightly fewer shopping trips to most of the major supermarkets as shoppers held back spend after Christmas, perhaps paying down credit cards or delaying spend to the next pay day in February. On top of this, sales in the final two weeks of January will have been disrupted by the snowy weather."

Commenting on retailer performance, Watkins added: "Shopping at different retailers, online and offline, is now an ingrained behaviour for many consumers as a way to cope with continued falls in disposable income. So, we expect to see short term gains and losses in market share across the top four retailers continuing throughout 2013."

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