Cash crisis prompts ‘freeze’ on our fresh food spending
SHOPPERS are shifting from fresh to frozen food and buying less to beat the squeeze on incomes, according to market research group NielsenIQ.
Though households spent 4.7 per cent more at supermarkets and grocery stores over the four weeks to October 8, the volume of items bought dropped by six per cent.
That compares to 2.5 per cent growth in till sales the previous month when sales volumes dipped by 5.4 per cent.
NielsenIQ said this indicates customers are spending more due to inflation but they are buying less in a bid to save due to the current crisis.
Sales of household goods fell 9.4 per cent, while fresh pro- duce was down 8.3 per cent and meat, fish and poultry sales tumbled eight per cent. NielsenIQ added that general merchandise sales, such as clothes and home furnishings, dived 7.1 per cent.
Mike Watkins, NielsenIQ’s UK head of retailer and business insight, said: “In recent weeks, there has been a small shift away from fresh to frozen.
“There has been slightly less spend on fruit and vegetables and fresh meat, fish and poultry and slightly more spend on impulse confectionery and soft drinks.
But as we edge closer to December, the challenging external economic factors that impact household budgets, such as concerns on mortgages and rising energy costs, become greater.” He added that with Christmas approaching and set to add to the pressure on household budgets, shoppers may start to look for cheaper alternatives and bring forward some seasonal spending to help spread the cost.
Elsewhere, comparison site Moneysupermarket.com has improved its profit forecasts following a better than expected third quarter, due to growing numbers of people looking to save money by switching. Chief executive Peter Duffy said: “The cost-of-living crisis makes our purpose of helping households save money as important as ever. This quarter was another good performance.”
The firm said revenues rose 33 per cent to £101.9million with insurance sales up 10 per cent to £45.3million and money search takings up 42 per cent to £28.1million.
Travel rose 204 per cent to £4.5million, thanks to the increase in people flying.