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(Alliance News) - UK demand for groceries has remained steady despite an uptick Covid-19 infections, research agency Kantar said Tuesday.
UK take-home grocery sales rose 9.3% in the 12 weeks to November 1, to total GBP29.44 billion, and in the most recent four weeks sales increased by a similar 9.4% - showing no "significant spike" in demand despite restrictions on movement coming into force across the country, noted Kantar.
Wales, where restrictions were tightest, recorded 15% growth in the month to November 1. England went into a month-long lockdown on Thursday last week.
"Welsh shoppers increased their spending by an average of GBP10 during the week when the 'firebreak' lockdown came into effect. The following week, online shopping in Wales hit its highest ever level accounting for 16.2% of the market. In Britain as a whole, a record 5.9 million people purchased groceries online in the month of October," said Fraser McKevitt, head of retail and consumer insight at Kantar.
While there was some uplift in Wales, McKevitt continued, the increased spending did not provide any evidence of consumers stockpiling. Initial figures suggest no sign of panic buying in England either, he added.
"The prospect of spending less time out and about during winter means people are hunkering down with seasonal comforts and making the best of life at home. Sales of scented candles, pot pourri and essential oils for diffusers have grown by 29% compared with last year," said McKevitt.
Amongst individual retailers, Ocado PLC was the fastest growing in the 12-week period, with sales surging 36% and its market share increasing to 1.7% from 1.4% a year ago.
Wm Morrison Supermarkets PLC led the 'Big Four' grocers, with sales up 11% and its market share growing to 10.2% from 10.0%.
Tesco PLC's market share was steady at 27.0%, and its sales grew 9.1%, while J Sainsbury PLC's sales grew 7.6% and its market share slipped to 15.3% from 15.6%.
Walmart Inc's Asda's market share dipped to 14.4% from 14.9%, while sales rose the slowest of the 'Big Four', up 5.0%.
Walmart in October agreed to sell Asda to Issa Brothers and UK-based private equity firm TDR Capital LLP for GBP6.8 billion. Brothers Mohsin and Zuber Issa are co-chief executives of Blackburn-based British retailer EG Group, a company which operates fast food outlets and petrol stations in Europe, Australia and the US.
Discounters Aldi and Lidl recorded sales growth of 6.6% and 13% respectively in the 12-week period, with Aldi's market share edging down to 7.8% from 8.0% while Lidl's nudged up to 6.1% from 5.9%.
Shares in Ocado were down 1.8% at 2,241.00 pence in London early Tuesday. Ocado shares had lost 13% on Monday after news of progress on a Covid-19 vaccine sent online retailers lower. Morrisons was up 1.9% at 167.30p, Tesco down 0.1% at 218.60p and Sainsbury's marginally higher at 197.90p.
By Lucy Heming; lucyheming@alliancenews.com
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