It may have been one of the hottest festive seasons on record in Australia, but grocery sales remained cool over Christmas, according to Nielsen data.
Over the four-week period ending 31 December 2016, growth in dollars spent was just 1 per cent compared to the same period in 2015 – well below the annual growth rate for total grocery.
“The way consumers shopped for groceries over the festive season remained similar to the total year trends with 40 per cent of consumers purchasing product while on promotion,” Nielsen director of retailer services Megan Treston said.
“We also saw consumers slightly reduce the number of items in their basket during December compared to the previous year.”
Some categories surged however. Fresh berries, mangoes, avocados, mineral water, and fresh prawns reported the biggest jump in both volume and value sales compared to 2015.
Melons, stone fruits, sliced meats and frozen poultry, on the other hand, all declined in sales volume, along with pantry staples including pasta and rice, long life juice and biscuits.
For the December quarter, meanwhile, the latest AFGC CHEP Retail Index is predicting an uplift in retail turnover growth, followed by a return to the previous trend of slowing growth in the first few months of 2017.
The Index estimates that year-on-year growth during the December quarter was 3.3 per cent, including year-on-year growth for the month of December of 3.0 per cent.
“The rise in December quarter retail sales growth is encouraging after a challenging year. However, following this temporary relief, economic trends still point to uncertainties in the national and global economy that are leading consumers to become more cautious,” Australian Food and Grocery Council CEO, Gary Dawson said.
Looking forward, the year-on-year Retail Index growth for the month of February 2017 is expected to be 2.0 per cent and year-on-year growth for the March quarter to be just 1.9per cent. That represents a moderation of more than a third, following the December quarter uplift.
