Supermarket sales dip in January

Sales in the sector fell in the week ending January 1, and only improved in the third week of the month as shoppers re-stocked their kitchens.

In the 12 week period to January 22, Sainsbury’s and Tesco saw strong growth with their shares up from 15.3% to 15.8% and 27.9% to 28.3% respectively.

Asda and Morrisons increased slightly, with shares up 15.7% to 15.8% and 11.1% to 11.2% respectively.

Waitrose share is up from 3.7% to 3.9% while Marks & Spencer is up from 3.7% to 3.8%.

Mike Watkins, senior manager, retailer services, at Nielsen said: “Price inflation is the main driver of retail growths in January.  When looking at volumes being sold we see that sales have actually declined 3.6% year on year in the 4 weeks to January 22. 

“There is always a seasonal hangover which follows Christmas but this year it has been particularly marked.  Consumers rely on cupboard stocks built up over the festive season and defer spending until the January pay check comes in but this year, set against a backdrop of price increases on fuel, utilities and food inflation the results are particularly sobering.”