This past month sales seem to be steadily growing. Consumer intelligence firm NIQ (formerly Neilson) has reported a 12.3% uplift in total till sales for May, a sharp increase from 9.7% in April; an uptick attributed to a combination of the Coronation, two bank holiday weekends, and inflationary prices but is it enough to suggest the recession is over?
This data is parallel to recent Office of National Statistics estimates that retail sales volumes rose by 0.5% in April, but whilst the rate of inflation is finally declining, food retailers have said they expect prices to rise in 2023. Moreover, higher interest rates have yet to kick in and many consumers protected by their fixed-rate mortgages will soon experience a significant drop in disposable income when they come to refinance, creating a dip in sales once again.
Regardless, it is significant that cash-strapped shoppers are always willing to spend when it comes to family occasions, holidays, and good weather. Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “Inflation has been a significant drag on shopper spend, so this year, incremental sales are reliant on a short-term boost from well-activated events rather than regular promotional activity. With 27% of households saying that they buy extra or special items to celebrate an event or occasion, this will have helped many prioritise spending for the Coronation in early May.”
Another crucial point from the NIQ’s latest Scantrack report is the reported growth in own-label products at 14.1% compared to 7.1% of branded ones – whilst the volume share of own-label rose to a whopping 63.3% of all FMCG sales.
The predictions show that sales for June will increase even more due to the warmer weather but how can brands ensure they get in on the action and protect their market share whilst own labels grow at a rate twice that of brands?
One route would be to optimise use of retail media to increase sales and maintain the loyalty of the existing customer base. Utilising savi’s mobile coupon solutions is an exciting new way whereby brands can drive activations through their ad spend – generating first-party data, insights and a better user experience amongst other benefits – a win-win for retailers, brands, and their shoppers.
Savi can help you to build a compelling mobile coupon campaign for this summer that will turn shoppers’ heads. Contact us here to find out more.