Online grocery growth slows, research shows

Print

Consumers grew more confident with shopping in-store in April, resulting in online grocery growth slowing to 25%, down from 92% in March, new research reveals.

Laptop-e1398675396409.jpg

Data from NielsenIQ shows total till sales at UK supermarkets maintained steady growth at 4.6% in the past four weeks ending 24 April 2021, despite the partial reopening of hospitality.

The figures reveal visits to bricks and mortar stores have increased by 3%, the first increase in a year, and a significant rise compared to last month’s -19% decline. However, spend per visit is declining and, as a result, in-store sales remained flat at £8bn, while online grocery sales remained strong at £1.3bn. Online share of grocery sales remained relatively stable at 14.2%, the research shows.

Data from NielsenIQ reveals that in the past four weeks, several of the categories that suffered most during lockdown have seen growth return as restrictions eased. This is most evident for health & beauty items (+27% year-on-year), fresh goods (+28%), and bakery (+15.5%). In addition, sales of beers, wines and spirits are up 9% year-on-year. However, some of the lockdown basket staples continue to decline, such as packaged grocery (-10%) and frozen (-5%).

Mike Watkins, NielsenIQ’s UK head of retailer and business insight, said: “As lockdown restrictions ease across the UK, it is clear that shopper behaviours have changed once again with growing confidence and growing numbers returning to stores. Whilst online sales remain high, we’re noticing a rebalancing of shopper baskets as consumers spread their spend beyond the lockdown staples.

Watkins added: “Categories such as health & beauty, deli and bakery have experienced a boost in the last four weeks as the schools have returned and consumers are given more freedom to socialise and meet outdoors in a small group. With rules set to relax further within the next few weeks, consumer lifestyles will begin to adapt and it’s likely that we’ll see another change in grocery spend as cafes, pubs and restaurants fully reopen. How far this is set to change exactly, remains to be seen.”

The data also shows that Lidl (18.2%) and Aldi (10.4%) grew the fastest over the past 12 weeks. Meanwhile, Asda (4.6%) and Sainsbury’s (3.9%) were the fastest-growing supermarkets. Marks and Spencer (3.9%) also experienced strong growth as non-essential retail reopened and more consumers also sought food-on-the-go items.