Supermarket growth slows as shoppers return to pre-lockdown habits
Grocery sales in the the UK rose 14.6 per cent year-on-year in the four weeks to 12 July, but lost the momentum seen at the beginning of lockdown as restaurants, pubs and cafes were allowed to reopen.
Supermarket sales slipped from 18.9 per cent growth the previous month, as shoppers tentatively returned to their normal habits while lockdown measures slowly began to lift earlier this month, the latest Kantar data showed.
Online retailer Ocado saw sales surge 45.5 per cent during the period, as shoppers bulk bought supplies during the last few months of the national lockdown.
High street staples The Co-op and frozen food chain Iceland also marked significant growth during the period, with sales up 30.6 per cent and 34.1 per cent respectively in the 12 weeks to 12 July, as grocery shoppers stocked up on frozen food during the warmer summer months.
Of Britain’s Big Four grocers, Morrisons was the best performer over the three months period with sales growth of 17.4 per cent, ahead of market leader Tesco, Sainsbury’s and Asda which had growth of 15.1 per cent, 13.5 per cent and 11 per cent respectively.
Online grocery sales swelled 92 per cent over the last month, marking the fastest growth since records began, as more than one in five households made an order online.
And Brits bagged comfort food in their home deliveries during the period, spending an additional £24m on tea and coffee in the past four weeks and £19m on biscuits.
Despite pubs, bars and restaurants reopening recently, more than half of consumers said they are still uncomfortable with visiting a pub and 42 per cent with visiting a cafe or restaurant, according to Kantar.
That caused a spike in take-home alcohol sales, which were up 41 per cent this month as people were unable to or avoided drinking out.
Sales from convenience stores are still up by more than a quarter year-on-year, but they attracted 2.6m fewer shoppers through their doors than at the peak of lockdown in April.
Consumers grew more comfortable commuting for their groceries as lockdown measures eased over the last three months, with the average distance travelled to a supermarket hiking 10 per cent to 4.9km over the period, a from an April low at the height of lockdown.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “As lockdown restrictions are gradually eased and non-essential retail outlets re-open, some consumers are slowly resuming their pre-Covid routines and shopping habits.
“This meant year-on-year supermarket sales growth decelerated in the most recent four weeks to 145 per cent, down from 19 per cent in June. However, we are clearly a long way off a complete return to normality.”
Data from Nielsen showed that online sales accounted for 14 per cent of all grocery spend in the UK over the last month, up from 13 per cent in the previous months, as lockdown habits began to solidify.
Sales of beer, wine and spirits hiked 31 per cent over the month, while frozen food sales grew 19 per cent, as BBQs were allowed back on the menu as Prime Minister Boris Johnson eased restrictions for outdoor gatherings.
Over the last four months, UK shoppers spent an extra £3.2bn at British supermarkets compared to the same period last year, despite the fact that the number of store visits dropped over the period.
However, extra spend from stockpiling behaviours and diverted expenditure from shuttered restaurants and pubs has begun to ease.