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Online growth prevails in grocery sector

by LLB Editor
23rd Jun 20 10:49 am

The latest grocery market share figures from Kantar show take-home sales from British supermarkets increased by 13.7% year on year in the 12 weeks to 14 June 2020, covering the full lockdown period.  Shorter term, the latest four-week ending numbers suggest that while the market has started to edge slowly back towards normality, shopper habits remain a world away from what retailers would usually expect.

Fraser McKevitt, head of retail and consumer insight at Kantar, says: “Sales growth over the four weeks to 14 June accelerated to 18.9%, up from 17.2% previously, with shopping patterns still disrupted compared with more normal times.  The boost has been led by online sales, which have continued to accelerate, and convenience stores, which took £1.6 billion through their tills during this period.  Despite the jump, grocers are still navigating a steep drop in the amount of food and drink bought on the go, which was down by a third* in early June.  These numbers are not covered in today’s take-home sales data, but were worth £347 million to grocers** in June last year and so represent a considerable shortfall.”

Online grocery’s strong performance continued this month, with sales rising by 91% over the four weeks.  The huge increase in available delivery slots across the sector meant nearly one in five British households bought over the internet in the month to mid June, totalling 5.7 million shoppers.  The cumulative impact of lockdown has helped Ocado to achieve its highest ever market share – hitting 1.7% over the past 12 weeks thanks to an industry-high sales growth of 42.2%.

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