C-stores losing market share gains, data shows

The latest figures from Kantar show that collectively convenience stores now account for 12.5% of sales, down from 14.9% in May 2020.

In addition, the proportion of supermarket sales made online remains much higher than 2019 levels, but fell back from 13.9% in April to 13.4% in the latest month.

Kantar data reveals overall take-home grocery sales fell by 0.4% during the 12 weeks to 16 May 2021, reflecting a tough comparison with exceptionally high sales during the first three months of the pandemic last year. Sales have fallen on 2020 figures because consumers are now able to eat in restaurants, pubs and cafés, and can pick up food on the go, Kantar says.

However, the figures show sales remain stronger than they were before the pandemic and consumers spent an additional £3.8bn at the supermarket in the past three months compared with the same period in 2019.

In addition, consumers are getting more confident venturing back out to stores as the vaccine rollout moves ahead. Shoppers made 58 million more visits to the supermarket this period than they did in May 2020, Kantar’s figures reveal. The biggest increase has been in London, where trips are up by more than a quarter.

There are also signs that the big weekly shop, which made a comeback last year while people tried to reduce time spent outside of home, maybe on its way out. Basket sizes have fallen for three months in a row and the average price of a trip to the grocery store over the month to 16 May is £22.82, the lowest since March last year.

The proportion of supermarket sales made online remains much higher than 2019 levels, but fell back from 13.9% in April to 13.4% in the latest month.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “As inclement weather did its best to dampen outdoor dining, grocery spending also reflects a wet start to summer 2021. During the first national lockdown last year many people found solace in the early summer sunshine, something 2021 has so far failed to deliver. This saw sales of barbeque staples like burgers fall in May by 20% year on year. Chilled desserts, up by 14%, fared better – no doubt buoyed by those hardy people braving the weather to entertain friends and family in the garden.

“Re-entering the social sphere over the past month means that our lives are becoming busier again and convenience is rising back up the agenda. Efforts to make mealtimes easier are reflected in a rise in sales of chilled ready meals by 20%, cooked poultry by 28%, and sandwich fillings by 12%. Ditching the sofa and emerging from our homes also saw people prioritise their personal appearance. As a result, sales of mouthwash grew by 16%, hair styling products by 26%, and shoe care products like polish by 50%.”

The data also shows that grocery inflation now stands at -1.2%, the fastest fall in prices since August 2016, a trend Kantar expects to normalise as the year progresses.