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(Alliance News) - UK grocery sales have slowed, according to the latest data from market researchers Kantar on Tuesday, as pubs, bars and restaurants were allowed to reopen once again after lockdown measures were relaxed.
However, Kantar noted UK grocery sales are still ahead of 2019's levels. In the 12 weeks ended May 16, take-home grocery sales were 0.4% lower annually at GBP31.30 billion from GBP31.41 billion in 2020.
Growth in online sales slowed from the previous Kantar survey. More consumers did their shopping in stores as the UK vaccination programme progressed. Online sales were 13.4% higher year-on-year this time around, compared to the 13.9% climb in the April figures.
Despite slowing online growth in the sector, Ocado PLC was still the grocer to deliver the sharpest growth in sales in the recent period.
Ocado's sales were 15% higher at GBP562 million from GBP487 million a year earlier. Ocado's market share climbed to 1.8% from 1.6%. However, Ocado's sales had jumped 28% yearly in the 12 weeks to April 18.
Among the 'Big Four' UK grocers, Asda posted the chunkiest sales growth, up 1.9% to GBP4.52 billion. Its market share rose to 14.4% from 14.1%.
Tesco's sales were largely flat at GBP8.46 billion, though its market share inched up to 27.0% from 26.9%. J Sainsbury PLC saw its market share climb to 15.1% from 15.0%. Sales there was 0.7% higher year-on-year at GBP4.73 billion.
Wm Morrison PLC saw 0.3% sales growth to GBP3.13 billion. The Bradford-based grocer's market share inched up to 10.0% from 9.9%.
Elsewhere, German discounters Aldi and Lidl posted sales growth of 5.2% and 4.6%, respectively. Aldi's market share rose to 8.1% from 7.7% and Lidl's improved to 6.2% from 5.9%. John Lewis Partnership's Waitrose posted a 2.1% sales hike, with market share inching up to 5.1% from 5.0%.
There were heavy sales falls for Co-op and Iceland, however. Co-op sales plunged 12% and Iceland's dropped 5.3%.
"Convenience stores, both independents and smaller formats of the major chains, are seeing some of their market share gains unwind too. Collectively these smaller stores now account for 12.5% of sales, down from 14.9% in May 2020," Kantar Head of Retail & Consumer Insight Fraser McKevitt said.
Also weighing on grocery sales this time was poorer weather, McKevitt noted.
"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 barbecue 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," the Kantar analyst explained.
Despite the weather, UK drinkers and diners returned to beer gardens, which were allowed to reopen in England on April 12. As of May 17, so just after the Kantar survey ended, venues were able to allow indoor dining.
Kantar said UK grocery price deflation now stands at 1.2%, the fastest fall in prices since August 2016. This is likely to normalise later this year, however, Kantar predicts.
McKevitt added: "As lockdown eases, people are returning to more normal habits and we can see that reflected in grocery sales. Many of us this time last year were eating all our meals at home and we bought extra food and drink as a result. Now we're seeing take-home grocery sales dip versus 2020 as people are able to eat in restaurants, pubs and cafes and can pick up food on the go again, grabbing a sandwich, for example, while they're out and about at the weekend. While not captured in these take-home figures, on-the-go grocery sales look set to be a significant driver of growth for supermarkets over the next few months."
Tesco shares were 0.7% lower in London on Tuesday morning. Sainsbury's was up 0.3%, Ocado 1.9% higher and Morrisons down 0.4%.
By Eric Cunha; ericcunha@alliancenews.com
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