Grocery sales lowest since pre-lockdown as market begins to return to normality

Grocery sales slowed to a 14.4% increase year on year during the 12 weeks to August 9, while sales in the last four weeks were worth £9.7bn, marking the lowest month since February, according to the latest statistics from market monitor Kantar. 

In the 12-week period sales topped £30bn across all the major grocers and convenience store chains as well as discounters and independent retailers, down from a high of in excess of £31.6bn for the 12 weeks to July 12. 

While sales figures were still consistently higher than pre-pandemic levels, Kantar said that as the UK continues to relax lockdown measures, customers’ shopping habits are “easing back to normality”.

The latest Kantar figures take into account the period since the wearing of masks and face coverings became mandatory in English stores. 

Kantar said it had seen some effect, with customers making two million fewer trips to shops since the rules were introduced in late July. 

Picking up the slack in diminished store visits, online grocery delivery continued to grow and hit a new high in terms of total market share with 13.5%. 

Of the big four supermarkets, Morrisons saw the strongest growth for the period with sales up 16% driven by a “strong performance from its supermarkets” giving it a 10.2% market share. Tesco meanwhile saw market share shrink 0.4% to 26.6%, as did Sainsbury’s with a 0.5 percentage point reduction to 14.9% and Asda with a 0.6 percentage point reduction to 14.3%. 

Iceland was the second fastest growing grocer for the period, with sales increasing 29.2%, while online specialist Ocado saw sales balloon by 45.5%. 

Kantar consumer insight director Charlotte Scott said: “While things are far from normal, the data shows a gradual softening of the more extreme lockdown trends in the grocery market. The relaxing of rules across much of the country means shoppers are less inclined to stock up their cupboards with regular large trips.

“That has seen average spend drop below £25 for the first time since March. However, at £24, it is still a world away from the pre-Covid average of £19 per trip.

“With the country officially entering recession last week, atypical behaviours are likely to continue. During a recession we would generally expect shoppers to manage their spend more carefully.

“Early evidence suggests that most are not yet choosing to trade down, with brands and premium own-label lines currently performing well, however price cuts have increased compared with July as some people look for opportunities to save.”