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(Alliance News) - Growth in UK grocery sales came to an abrupt end in recent weeks, numbers from Kantar showed Tuesday, as supermarkets begin to lap tough comparatives on the anniversary of the country entering its first lockdown.
During the four weeks ended March 21, UK grocery sales were down 3.0% annually. Over the wider 12-week period surveyed by Kantar, sales growth was 7.4% to GBP31.12 billion, a demonstrable slowdown from some of the previous figures over the past year. In Kantar's survey for the 12 weeks to February 21, sales climbed 13%.
It was around this time 12 months ago that UK grocers began seeing a boom in demand as lockdowns and the threat of Covid-19 meant consumers turned to heavy stockpiling in fear of shortages further down the line.
"Spring's arrival signals the start of a really interesting period for the grocery market. The anniversary of the first national lockdown means we begin to compare grocery sales against the record-breaking levels seen in the early days of the pandemic and growth has perhaps not surprisingly dipped over the past four weeks as a result," Kantar analyst Fraser McKevitt commented.
"This time last year, Brits were adjusting to schools and offices closing and making extra trips to the supermarket to fill their cupboards for lockdown. To put that into context, shoppers made 117 million fewer trips to the supermarket this month compared with those fraught weeks in March 2020."
By grocer, Ocado PLC again registered the largest annual sales growth over the 12 weeks, up more than a third, despite a slowdown in online shopping. Big German discounters gave back some market share.
Tesco PLC sales rose 8.5% year-on-year to GBP8.42 billion and its market share rose to 27.1% from 26.8%. J Sainsbury PLC sales came in 7.3% higher at GBP4.75 billion, though its market share was unchanged at 15.3%.
Wm Morrison Supermarkets PLC's sales were up 8.7% to GBP3.15 billion and the Bradford-based grocer's market share inched up to 10.1% from 10.0%. Rounding off the "Big Four", Asda sales were 7.6% higher and its market share improved a notch to 15.1% from 15.0%.
Ocado, one of the bigger beneficiaries of an increasing take-up of online grocery shopping over the past 12 months, saw its sales jump 34% to GBP578 million. Its market share improved to 1.9% from 1.5%.
Kantar noted online grocery shopping eased during the 12 weeks, however.
"Online grocery shopping levels dropped back as more people returned to stores, visiting 13 million more times than in February. There are signs that the largely vaccinated over 65s are growing in confidence, as they increased their trips to supermarkets by 6.8% – more than double the national rate," Kantar explained.
Elsewhere, sales at John Lewis Partnership's Waitrose were up 5.1%, though its market share edged down to 4.9% from 5.0%.
German discounters Aldi and Lidl also gave up market share. Aldi's market share fell to 7.8% from 8.2% and Lidl's ticked down to 5.8% from 6.1%. Aldi's sales during the 12 weeks were up 1.5%, while Lidl's climbed 2.9%.
At Co-op, sales rose 7.1% but its share of the market was steady at 6.2%. Iceland sales rose 14%, the second-biggest jump of all, helping market share inch up to 2.3% from 2.2%.
Focus now turns to Easter, and the promise of a less muted long weekend than a year ago.
McKevitt added: "Warmer temperatures and lighter evenings mean many of us are planning outdoor get togethers over the long weekend. 61% of people are looking forward to socialising with friends again and 23% of households are planning to dust off the barbecue if the weather is kind to us.
"There are signs of people making a special, even symbolic, effort this year and grandparents might be showing up with additional treats after 12 months of restrictions. Shoppers had already spent GBP37 million on hot cross buns and GBP153 million on Easter eggs by 21 March – GBP48 million more than at the same stage last year."
In London on Tuesday morning, Tesco sales were up 0.5%, Ocado sales were 0.4% higher and Sainsbury's up 0.1%. Morrisons was trading 0.2% lower.
By Eric Cunha; ericcunha@alliancenews.com
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