Total sales at UK supermarket tills slowed in March, but analysts pinned this to a later-than-usual rather than a structural slowdown.
Sales growth at tills slowed to 2.7 per cent in the four weeks to April 2, down from a four per cent rise in February, according to NIQ.
In-store visits grew 6.8 per cent compared to online sales, which grew by just 0.7 per cent.
NIQ attributed the dip in sale to fewer celebratory events in March and shoppers delaying spending to enjoy the late Easter and Mother’s Day this year.
“Retailers have reasons to be optimistic this dip in sales won’t last,” Mike Watkins, Head of Retailer and Business Insight at NIQ, said.
“Sunnier weather at the start of April and the lead up to Easter will encourage extra spend which will then improve topline sales… We expect all retailers to keep an eye on the favourable start of spring.”
While three million workers will receive a rise in pay due to the higher minimum wage, there has also been a large rise in essential bills like energy and council tax.
This – along with the tail end of the cost-of-living crisis – has pushed Brits toward discount goods.
Kantar found that promotional sales ramped up in March to 28.2 per cent of total grocery spending, the highest level in four years.
“The rising cost of groceries ranks third on the list of concerns keeping consumers awake at night, just behind energy bills and the country’s overall economic outlook,” Fraser McKevitt, head of retail and consumer insight at Kantar, said.
“While the number of people reported as financially struggling has fallen from its recent peak, this still accounts for almost a quarter of the country.”