UK shoppers spent a total of £53.7bn on FMCG in Q3 2024. This is a 3.7% uplift on the same quarter last year. New data reveals a silver lining for the Tech & Durables (T&D) market, with the rate of decline slowing to -1.7%, this is down from -2.8% recorded in Q3 2023.
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This is according to new insight from the NIQ's Retail Spend Barometer, which has been drawn from GfK intelligence. The tool measures the turnover in sales of FMCG and non-food consumer products sold in retail stores across the UK.
NIQ data also reveals a narrowing gap between private label and branded products as the growth rates indicate shoppers are now starting to treat themselves to small indulgences once again. In Q1 2024, FMCG branded unit growth was recorded at 0.7% compared to +3.1% for private label. However, in Q3 branded unit growth sits at 1.1% versus +1.7% for private label.
Despite another challenging year so far for the Tech & Durables market, there are signs of positivity with a slower decline (-1.7%) in Q3 2024, compared with an overall decline of -3.5% for the rolling year to date. The biggest drag in the category was home appliances (-6.2%), which declined further from -6.1% in Q2.
Ben Morrison, Retail Services Director UK & IRE at NIQ, says, 'The first eight months of the year so far have been more optimistic compared to 2023, but shoppers remain cautious. We are seeing more considered purchasing, particularly within T&D as consumers opt to replace products when they must rather than upgrade a working one. This also plays to the desire for more sustainable living – beyond just energy efficiency – which is adding to the decision process. When it comes to upgrades, credit schemes offer immediate gratification and are used more often by those on higher incomes to enable upgrades for non-essential big-ticket items.'
Morrison concludes: 'According to GfK's Consumer Confidence Barometer, a quarter of consumers reported they were 'just managing' at the end of Q3 and 1 in 3 said they were unlikely to be able to save in the year ahead. Shoppers therefore remain cautious, so as we enter the golden quarter, promotions across retailers are going to be key in persuading savvy shoppers to trade up.'
More information:
NIQ
www.nielseniq.com