UK supermarket promo sales hit six year low as own-brand focus endures

The UK’s biggest supermarkets continue to rein in in-store promotional deals, bringing revenue from the deals to the lowest levels in six years.

Kantar Worldpanel reports that the UK grocery market saw a steady growth of 0.3 per cent in the 12 weeks to 14 August, citing the warm weather for the upturn.

However, across the board brands look to be reverting to simpler pricing structures, away from promotional and multi-buy offers with them representing only 37.7 per cent of sales revenue, down from 40 per cent in mid-2015 – and the lowest for six years.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Fewer promotions doesn’t mean consumers are paying more for their shopping but does reflect the renewed focus on own-label lines which is visible across the market.

“Shoppers are clearly responding to the better value offered through own label rather than money off, with own brand goods growing at both ends of the price spectrum: premium retailer brands are up by nine per cent and value lines up by two per cent.”

The warm weather saw a 23 per cent boost of frozen confectionery sales with chilled drinks also up a tenth on the previous 12-week period. Euro 2016 was found to have a minimal effect on sales due to England's early exit although Iceland (the supermarket) made the most of the brave performance of Iceland (the country), which it was a wildcard sponsor of.

The report also found that there “remains no evidence of Brexit-fuelled inflation causing food prices to rise”.

Below is each supermarket's movement in the market. Lidl and Aldi are up and the Asda decline accelerated.