Grocery sales rise as consumers shift spend to at-home options

The end of the government’s Eat Out to Help Out scheme designed to boost hospitality industry sales contributed to a 9.4% increase in grocery sales in the 12 weeks to October 4, market monitor Kantar reported. In the final four weeks of the period the rise was 10.6%.

Kantar head of retail and consumer insight Fraser McKevitt said: “Shoppers are moving a greater proportion of their eating and drinking back into the home. This is likely a response to rising Covid-19 infection rates, greater restrictions on opening hours in the hospitality sector and the end of the government’s Eat Out to Help Out scheme.”

He observed that alcohol sales were worth £261m more to grocers this month than last year, as a 10pm curfew was imposed on pubs, bars and restaurants in a bid to stop the spread of Covid-19.

Online sales in the past month surged 76% year on year. Kantar said that a fifth of households ordered groceries online and observed: “The proportion of sales made digitally remains unchanged from last month at 12.5%, suggesting that many shoppers are choosing to stick with deliveries as the pandemic develops.”

Ocado, whose joint venture with Marks & Spencer went live last month as it split with former partner Waitrose, increased sales by 42% over the 12 weeks, upping its year-on-year market share from 1.4% to 1.8%.

Kantar reported that Waitrose was “the fastest-growing retailer online this month”. Waitrose’s sales, including through its stores, were up 8.9% and it held its market share steady at 5%.

McKevitt said: “Ocado has increased the number of shoppers using its service in the latest period – the only retailer to do so – adding 22,000 customers. Its new partnership with Marks & Spencer is no doubt part of the appeal.

“Waitrose is keeping pace with its own online offer. Although starting from a relatively low base, it was once again the fastest-growing retailer online.”

Among the big four, Morrisons led the way with sales growth of 12%, taking its share from 9.9% to 10.1%. Asda trailed among the big four, generating sales growth of 5.4% taking its market share down from 15% to 14.4%.

Iceland performed strongly, as sales advanced 17% and its market share rose from 2.2% to 2.3%.

Neighbourhood stores continued to increase sales. The Co-op was up 9.3%, with market share unchanged at 6.6%. Symbol group and independent retailers notched up sales growth of 20% and increased market share from 1.8% to 2%.

Value specialist Lidl’s sales rose 12% – it has been in double-digit growth since last December – and its market share edged up from 6% to 6.1%. Aldi’s sales rose 7.8% but its market share inched down from 8.1% to 8%.