(Alliance News) - Take-home grocery sales in the UK rose by 17% during the 12 weeks to July 12, the fastest growth rate since 1994, data from research agency Kantar showed on Tuesday.
Kantar said total sales reached a record GBP31.6 billion in the period, up from GBP27.05 billion, reflecting three months of increased grocery purchasing during lockdown while most other retailers, bars and restaurants were either closed or experiencing significant reductions in trade.
Fraser McKevitt, head of retail & consumer insight at Kantar, 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 GBP25.05, 35% more than the same period last year, as most people continue to eat more meals and snacks at home."
Among the "Big Four" UK grocers, Tesco PLC's market share dipped to 26.7% from 27.1%. This was despite sales rising 15% annually to GBP8.45 billion.
J Sainsbury PLC's market share also slipped, to 14.9% from 15.3%, but it similarly booked a double-digit annual sales rise. Sales were up 14% to GBP4.71 billion.
Wm Morrison Supermarkets PLC's sales rose 17% to GBP3.25 billion, and its market share increased to 10.3% from 10.2%.
At Walmart Inc-owned Asda, market share slumped to 14.1% from 14.9%, but sales climbed 11% year-on-year to GBP4.47 billion.
Online grocer Ocado achieved a market share of 1.7%, up from 1.4% a year ago. Sales jump 46% year-on-year during the 12 weeks to GBP533 million.
In terms of market share, it wasn't the best 12 weeks for the German discounters. Lidl's share of the market crept up to 5.9% from 5.8%, but Aldi's slipped to 7.8% from 8.1%. Lidl's surged 17% to GBP1.85 billion, and Aldi's sales were 13% higher at GBP2.46 billion.
Outside of Ocado, Co-Operative posted the largest sales rise, jumping 31% to GBP2.27 billion, and its market share rallied to 7.2% from 6.4%.
Iceland also booked a large sales rise of 34% to GBP785 million, and its market share came in at 2.5%, up from 2.2% in the year prior.
Sales at Waitrose increased 11% to GBP1.49 billion, but its market share dipped to 4.7% from 5.0%.
Annual grocery price inflation meanwhile, Kantar noted, stood at 3.6% for the 12-week period.
In London on Tuesday morning, Ocado shares were 2.7% higher, Tesco was up 1.3%, and Sainsbury's was down 0.7%. Morrison's was up 1.3%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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