uk iri sales various categories 2005

8/3/2019 UK IRI Sales Various Categories 2005

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SUPERMARKET REVIEW: EARLY EASTER EGGS ON SALES

May 24, 2005

May 24, 2005 – IRI (Information Resources), Bracknell, today announced that overall value sales in the firstquarter of 2005 were up by 1.7% through the major supermarkets and health and beauty retailers. Thiscompares to a 4.8% increase seen in the same quarter of 2004.

Growth has been driven by non-food which saw an increase of 4.6%, helped by the post-Christmas salesperiod where consumers took advantage of the hefty discounts available on household goods. Grocery saleswere fairly static, at -0.2%, which is a more promising start to the year after the -0.6% decline seen at the endof 2004.

Results for the full year are also positive with an increase in total sales of 1.4% compared to the same periodin 2004. Sales within non-food are up, which is reassuring following the speculation that consumer spendingwill decrease because of fears of further interest rate hikes and uncertainty in the housing market.

Mothers Day and the early Easter both helped to boost sales figures in non-food. However the warmer weather over the first holiday period of the year did not help increase spending in Grocery which has declinedby -0.3% over the full year.

Trends by category

Chilled Food continues to grow, with Fresh Pasta showing the greatest increase in value sales for the latest12 (11.7%) and 52 (13.1%) weeks. This indicates that the consumer’s love affair with the Atkins Diet couldfinally be over. Sales fell dramatically for chilled sauces, dips and dressings and ready meals and sauces,which is likely to be a result of the Sudan-1 scare during February.

Wine had the highest contribution and growth to the Beers, Wines and Spirits category. The increase, whichis up 5.7% on a year ago, may be due to a combination of the early holiday period and an increasing number of discounts available. The biggest decline comes from Other Beers, Wines and Spirits as ready-to-drinkformats continue to struggle.

Fresh Fish saw a rise of 14.6% compared to the same 12 weeks in 2004. This revival may be caused by thecurrent trend towards healthier eating, convenience and, in some cases, the endorsement of celebrity chefs.

Overall sales in Fresh Meat showed a further decline after a disappointing end to 2004. The biggest year onyear increase came from other fresh meat at 8.4%, this may be due to the wider availability of more exoticmeats such as ostrich, kangaroo and crocodile. Sales of lamb also increased on last year which could be areflection of extra sales generated by an ad campaign for New Zealand lamb targeted around Mothers Dayand Easter. The Grocer (Jan 29, 2005) also reports that lamb is becoming a more popular choice amongyounger consumers, which could be starting to impact sales.

The Produce sector showed a sales increase over the quarter with the largest growth coming from nuts anddried fruit and salad vegetables. The unseasonably warm weather over the holiday period is likely to be acontributing factor for this as people dusted off their BBQ’s and started entertaining earlier than usual.

Overall sales for the Ambient category were down for the year. Confectionary saw a 10.1% increase on thesame period last year thanks to the early Easter. The biggest change over 12 weeks, up 47.5%, was in Other Ambient, which includes mixed ambient product ranges and gift sets. Again, a marked decrease in sales of ambient ready meals is likely to be a knock-on effect from the Sudan-1 crisis.

Sales continue to decline in Frozen Food with all sectors showing a decrease for the first quarter of the year.Despite continued advertising and promotional activity across the categories it seems that consumers are stillfavouring chilled and fresh produce over the frozen alternatives.

‘Other non-food’ continues to drive growth within non-food. The sector saw a big increase in ‘miscellaneousnon-food’ which includes clothing, DIY, furniture and motoring accessories. This could be due to the seasonal

sales period at the beginning of January and the increased spending over the Easter bank holiday. Tobacco,

TEL +44 (0)1344 746000

IRIEAGLE HOUSE, THE RINGBRACKNELL, RG12 1HSUNITED KINGDOM FAX +44 (0)1344 746001 WWW.INFORES.COM



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newspapers and magazines, lottery and stationary are all showing good growth compared to the same timelast year and sales of computer games were also up for the period, with thanks going to Santa for fillingChristmas stockings with new gaming consoles.

The early Easter holidays may again be a contributing factor toward the increased growth in suncare withinHealth and Beauty, as many people took the opportunity to escape abroad, however growth for the year is

down -4.1%. Baby Food saw the biggest year on year increase, while toiletries sales continued to decline,which could be a result of the heavy promotional competition between retailers.

Petcare sales show a small decline with the biggest growth coming from Other Petcare. Consumers are nowprepared to spend more on their pets wellbeing and retailers are catering to this need, making more non-foodproducts available in-store that can be picked up alongside the weekly grocery shop.

Sales within the Household sector continue to decline with a drop of -6.0% on the same quarter in 2004.None of the categories saw any growth and the biggest decline came from Household Sundries, whichincludes sectors such as Air and Shoe Care.

Background data

52 weeks to end March 2005 12 wks to Mar 05

Value sales (m) % change % contribution* % change

Total Sales £74,038 1.4 1.7

Grocery £49,450 -0.3 0.2 -0.2

Chilled £12,100 1.8 0.4 -0.2

Beers, Wines & Spirits £6,457 2.0 0.3 2.5

Bakery £2,892 1.1 0.1 -2.6

Other Grocery £61 5.9 0.0 16.0

Fresh Fish £748 0.0 0.0 14.6

Fresh Meat £3,415 -0.6 0.0 -0.5

Produce £6,197 -1.3 -0.2 2.0

Ambient £13,954 -1.0 -0.3 -0.4

Frozen £3,628 -7.6 -0.6 -8.4Non Food £24,505 4.8 1.5 4.6

Other Non Food £12,517 11.4 5.2 11.4

Health And Beauty £7,343 0.8 0.2 0.7

Petcare £1,044 -1.8 -0.1 -1.7

Household £3,600 -5.4 -0.8 -6.0

Data to 2 April 2005. * % contribution is the weighted per cent change within each sector

Please note data in this report is taken from the InfoScan TotalStore service which does not currently include Morrisons data.Some of the sales decline could be attributed to the conversion of Safeway stores to the Morrisons fascia.

Source: InfoScan TotalStore, Copyright © Information Resources, 2005. All rights reserved. InfoScan TotalStore tracks the sales of allgoods sold in the following major retailers in Great Britain: Asda, Boots, Co-ops, Iceland, Safeway, Sainsbury’s, Somerfield / Kwik Save,

Superdrug, Tesco and Waitrose.IRI is a leading global provider of market content, analytic services and business-performance management (BPM) solutions to the FMCGand retail industries. Serving the leading FMCG and retail companies in the world, IRI's solutions enable consumer-driven, real-timeFMCG and retail enterprise. The company’s BPM solutions uniquely combine its breakthrough enterprise analytics software, marketcontent and analytic models to provide a total view of the market, enabling maximum business performance across the entire enterprise.IRI is the trading name for IRI InfoScan and IRI Software Ltd, affiliates of Information Resources, Inc. Further information may be found atwww.infores.com.

For further details please contact:Rebecca Schanche, MarketingIRI, Eagle House, The RingBracknell, RG12 [email protected]



Supermarket ReviewQuarter 1, 2005

12 weeks to 12 weeks to

March 2005 March 2005

Sales (£m) % chg % contribn % chg Sales (£m) % chg % contribn % chg

Grocery £49,450 -0.3 -0.2 Other Hot Beverages £100 6.7 0.0 1.1

Chilled £12,100 1.8 -0.2 Breakfast Cereals (RTE, hot & bars) £1,000 0.6 0.0 -0.4

Fresh Milk £1,557 8.8 1.0 8.1 Canned Beans & Pasta £284 1.5 0.0 3.3

Chilled Ready Meals & HMR £1,316 3.6 0.4 -4.8 Rice, Pulses & Cereals £217 1.9 0.0 5.8

Cheese £1,533 2.6 0.3 -1.3 Other Ambient £14 15.5 0.0 47.5

Sandwiches £453 9.1 0.3 4.9 Dry Pasta £112 1.3 0.0 -0.6

Chilled Fruit Juice £491 4.6 0.2 9.1 Sauces & Pickles £583 0.2 0.0 -2.0

Chilled Pizza £321 5.7 0.1 3.2 Soup £272 -0.1 0.0 -3.5

Cooked Meats £1,689 0.7 0.1 -0.2 Canned & Bottled Fruit £111 -0.8 0.0 -2.9

Fresh Pasta £108 13.1 0.1 11.7 Milk, Topping & Whiteners £215 -0.6 0.0 -4.6

Chilled Desserts £1,355 0.9 0.1 -1.8 Canned Meats £175 -2.5 0.0 -4.7

Butters, Fats & Margarines £684 0.8 0.0 0.9 Hot & Cold Desserts £231 -2.1 0.0 -5.1

Chilled Breads £85 3.9 0.0 3.5 Cooking Products £932 -0.6 0.0 0.4

Chilled Pies & Pastries £676 0.4 0.0 -2.2 Coffee £505 -1.2 0.0 -1.8

Fresh Soup £79 3.6 0.0 6.7 Ambient Ready Meals £100 -10.7 -0.1 -17.3

Chilled Salads £197 -0.1 0.0 0.6 Canned Fish £305 -4.5 -0.1 2.8

Fresh Cream £146 -0.2 0.0 1.7 Canned & Packet Veg £281 -5.4 -0.1 -4.2

Other Chilled £105 -7.0 -0.1 -5.6 Biscuits £1,237 -1.9 -0.2 -3.3

Sausages £370 -2.5 -0.1 2.9 Tea (inc. fruit & herbal) £406 -7.6 -0.2 -6.5

Chilled Sauces £48 -19.3 -0.1 -35.1 Crisps, Snacks & Nuts £1,184 -4.0 -0.4 -3.7

Chilled Dips And Dressings £130 -10.8 -0.1 -19.6 Soft Drinks £2,511 -4.8 -0.9 -3.9

Bacon £755 -9.1 -0.6 -9.3 Frozen £3,628 -7.6 -8.4

Beers, Wines & Spirits £6,457 2.0 2.5 Other Frozen £211 -5.4 -0.3 -2.0

Wine £2,809 5.7 2.3 6.1 Frozen Meat £761 -3.6 -0.8 -9.5

Spirits £1,579 2.0 0.5 -0.1 Frozen Vegetables £654 -5.3 -1.0 -5.4

Beer £1,519 -0.0 0.0 1.8 Frozen Ready Meals & Snacks £570 -6.9 -1.2 -13.5

Vermouths & Aperitifs £36 -1.4 0.0 -0.2 Frozen Pizza £249 -14.5 -1.2 -15.9

Cider & Perry £170 -3.1 -0.1 -3.4 Frozen Fish £496 -8.5 -1.3 -5.6

Fortified Wine £174 -5.2 -0.1 -3.9 Ice Cream & Desserts £687 -11.7 -2.5 -5.8

Other Beers, Wines & Spirits £169 -19.8 -0.6 -19.1 Non Food £24,505 4.8 4.6

Bakery £2,892 1.1 -2.6 Other Non Food £12,517 11.4 11.4

Bread & Cakes £2,134 2.7 1.9 -0.8 Health & Beauty £7,343 0.8 0.7

Instore Bakery £758 -3.1 -0.9 -7.3 Healthcare £779 2.4 0.2 -3.3

Other Grocery £61 5.9 16.0 Baby Food £260 3.6 0.1 3.9

Fresh Fish £748 0.0 14.6 Baby Care £707 1.2 0.1 -1.1

Loose Fresh Fish £249 8.0 2.5 15.0 Oral Hygiene £568 1.3 0.1 5.0

Prepacked Fresh Fish £499 -3.6 -2.5 14.5 Razors & Blades £192 2.0 0.1 -1.6

Fresh Meat £3,415 -0.6 -0.5 Medicines £747 0.2 0.0 6.5Other Fresh Meat £232 8.4 0.5 5.5 Male Grooming £398 -0.9 0.0 2.1

Lamb £324 5.8 0.5 4.1 Haircare £859 -0.6 -0.1 -2.0

Pork £397 -3.7 -0.4 -8.7 Suncare £131 -4.1 -0.1 11.4

Poultry £1,399 -1.2 -0.5 2.0 Feminine Care £214 -3.7 -0.1 -5.5

Beef £1,063 -2.2 -0.7 -2.9 Toiletries £747 -3.8 -0.4 -3.3

Produce £6,197 -1.3 2.0 Petcare £1,044 -1.8 -1.7

Nuts & Dried Fruit £95 22.4 0.3 37.5 Pet Non-Food £71 1.3 0.1 -1.3

Other Produce £695 2.0 0.2 4.6 Other Petcare £0 5.1 0.0 14.2

Vegetables £1,665 -0.3 -0.1 -2.3 Pet Food £973 -2.0 -1.9 -1.7

Salad Vegetables £1,382 -3.4 -0.8 9.0 Household £3,600 -5.4 -6.0

Fruit £2,360 -2.4 -0.9 -0.6 Other Household £222 -4.3 -0.3 -4.0

Ambient £13,954 -1.0 -0.4 Cleaning Products £585 -2.7 -0.5 -4.2

Confectionery £1,775 3.4 0.4 10.1 Foils, Wraps & Bags £236 -6.5 -0.5 -6.3

Baking Products £506 5.7 0.2 5.6 Household Sundries £300 -6.6 -0.6 -11.9

Eggs £394 6.2 0.2 2.6 Household Paper £1,005 -6.2 -1.8 -5.7

Preserves & Spreads £323 3.9 0.1 3.1 Detergents & Laundry £1,253 -5.8 -2.1 -5.9

Speciality Foods £182 5.2 0.1 -2.9

% Contribution is the weighted per cent change within each sector Data to 2 April 2005

Source: InfoScan TotalStore

Copyright © Information Resources 2005. All rights reserved

52 weeks to end

March 2005

52 weeks to end

March 2005

uk iri sales various categories 2005

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