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British Queen celebrates

Sales growth at British supermarkets gained momentum over the past month, driven by early Christmas shopping, according to industry data released on Wednesday.

Market researcher NIQ reported that UK supermarket sales increased by 4.7% in the four weeks leading up to October 5 compared to the same period last year, improving from a 4.0% rise in the previous month.

"Many households are now planning for Christmas and gradually stocking up to spread out the costs," said Mike Watkins, NIQ's UK head of retailer and business insights.

The data, offering the latest insights into UK consumer behavior, highlighted that purchases of Halloween and Christmas products boosted general merchandise sales by 0.2% — the first growth in this category in 12 months.

NIQ also reported a 7.6% year-on-year increase in supermarket visits, though the average basket value dropped by 4% to £18.62 ($24.34), reflecting easing inflationary pressures.

Similarly, data from competitor Kantar last week showed that online supermarket Ocado continued to lead as the fastest-growing UK grocer, with a 15.9% sales increase over the 12 weeks leading up to October 5.

Marks & Spencer followed closely, recording a 12.4% rise in sales. NIQ noted that M&S attracted 800,000 new shoppers over the four-week period compared to last year, and during the 12-week period, one in three UK households purchased food and drinks from M&S.

Market leader Tesco saw sales grow by 5.3%, while the second-largest player, Sainsbury’s, posted a 5.5% increase.

However, Asda, the UK’s third-largest grocer, faced challenges as its sales dropped by 3.1%, resulting in a loss of 1% market share over the year.

In a separate report on Wednesday, official data revealed that UK inflation fell more than expected, declining to an annual rate of 1.7% in September from 2.2% in August. Food inflation stood at 1.8%. Photo by J Taylor, Wikimedia commons.