Convenience stores sales still up as lockdown eases

Figures from Kantar show Co-op, the largest player in the convenience sector, achieved a market share of 7.2% during the past 12 weeks, as its sales increased by 30.6% year-on-year.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Convenience stores were a lifeline for many people in the early days of the crisis, providing essential supplies close to home. Sales from these types of stores are still up by more than a quarter year-on-year, but they attracted 2.6 million fewer shoppers through their doors than at the peak of lockdown in April. Consumers are clearly growing more comfortable getting in their cars or taking public transport, as the average distance travelled to a grocer has gone up to 4.9km, a 10% increase from the April low.”

The latest grocery market share figures from Kantar show take-home grocery sales rose by 16.9% during the 12 weeks to 12 July, the fastest growth rate since 1994. Total sales reached a record £31.6bn, reflecting three months of increased grocery purchasing during lockdown. However, Kantar warned that there are signs that shoppers are cautiously returning to their pre-lockdown behaviours.

McKevitt said: “As lockdown restrictions are gradually eased and non-essential retail outlets re-open, some consumers are slowly resuming their pre-Covid routines and shopping habits. This meant year-on-year supermarket sales growth decelerated in the most recent four weeks to 14.6%, down from 18.9% in June.  However, we are clearly a long way off a complete return to normality. Footfall was still 15% lower during the past four weeks and the average spend on a supermarket trip was £25.05, 35% more than the same period last year, as most people continue to eat more meals and snacks at home.

“Despite pubs, bars and restaurants re-opening recently, more than half of consumers say they are still uncomfortable with visiting a pub and 42% with visiting a café or restaurant.  As a result, take-home alcohol sales were still up by 41% this month as people were unable or avoided drinking out.  The cost of working from home is also starting to add up for many. Shoppers spent an additional £24m on tea and coffee during the past four weeks and £19m on biscuits. In comparison, sales of some products that were in huge demand as the nation entered lockdown in March, are now only marginally higher than last year – with healthcare up by 2% and household products by 3%.”

The growth in online grocery sales continues and increased to 92% this month, marginally higher than the previous four weeks.

Promotional activity at the grocers picked up in the latest four weeks, with 29% of sales including some type of discount, the Kantar figures show.