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(Alliance News) - UK supermarket sales climbed in a recent 12-week period, data from Kantar showed on Tuesday, with online grocer Ocado Group PLC again posting the chunkiest sales rise.
Kantar noted UK shoppers took heart from easing social restrictions and took more time to visit physical stores, though recent growth in alcohol sales have slowed as pubs have reopened. What's more, food prices slipped to deflationary territory for the first time in over four years.
UK take-home grocery sales rose 5.7% to GBP31.60 billion in the 12 weeks to April 18, from GBP29.91 billion a year earlier.
"The most recent trends suggest that consumer confidence is increasing, as the successful vaccine roll out and relaxation of social restrictions have encouraged more people to visit physical stores and spend time with friends and family. In the four-week period to the same date, growth accelerated to 6.5%," Kantar said.
Among the listed grocers, Tesco PLC's sales growth during the 12 weeks was 6.4% to GBP8.52 billion. Its market share inched up to 27% from 26.8%.
J Sainsbury PLC posted 6.0% sales growth to GBP4.83 billion, though its share of the grocery market was unmoved at 15.3%.
FTSE 250-listed Wm Morrison Supermarkets PLC posted sales growth of 7.2% to GBP3.16 billion, helping push its market share to 10% from 9.9%.
Ocado's sales jumped 28% to GBP584 million, despite the number of online shoppers falling for the second month in a row.
Kantar analyst Fraser McKevitt said: "The share of groceries ordered via the internet in the most recent four weeks slipped to 13.9%, down from a peak of 15.4% in February. While online is still growing strongly, at 46%, the rate is half what it was at the height of the pandemic. Convenience stores – both independents and those owned by major retailers – were also particularly popular during the first lockdowns and, against such comparisons, it is unsurprising that sales have fallen by 19% in the past month."
Ocado's market share improved to 1.8% from 1.5% a year earlier.
Rounding off the 'Big Four', Asda's sales rose 8.0% to GBP4.67 billion, with its market share rising to 14.8% from 14.4%. John Lewis Partnership's Waitrose posted 5.0% sales growth, with its market share unchanged at 5.0%. Iceland saw sales growth of 6.8%, though its market share was also unmoved, at 2.3%.
German discounters Aldi and Lidl posted sales rises of 6.6% and 6.1%, respectively. Aldi's market share improved to 8.0%, though Lidl's was unchanged at 6.0%. The discount chains have struggled to sweep up market share during the pandemic.
On April 12, the UK took a step in easing Covid-19 restrictions. Outdoor pubs and bars in England were allowed to reopen, meaning punters were able to enjoy pints in beer gardens.
"The return of wider retail and hospitality will naturally have a knock-on effect for the grocers. For example, sales of alcohol grew by just 1% in the latest four weeks, as people now have the option of eating and drinking out of the home again. That said, the easing of restrictions was clearly a cause for celebration at home too. Take-home sales of sparkling wine increased by 48%, suggesting that many raised a toast with friends and family in the garden or the park," McKevitt added.
Grocery deflation currently stands at 0.3%. It was the first decline since December 2016.
McKevitt said: "There has been a lot of talk about grocery prices this year, and shoppers will welcome the news that like-for-like take-home grocery prices are lower than in 2020. This is largely down to promotions, as retailers prioritised filling shelves over running deals last year. Compared with April 2020, an extra GBP582 million of groceries were sold on offer, most of which were straightforward price cuts."
In London on Tuesday morning, Tesco shares were 0.7% higher, Ocado's rose 0.6% and Morrisons was up 0.3%. Sainsbury's shares were 0.2% lower.
By Eric Cunha; ericcunha@alliancenews.com
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