TOP NEWS: Virus Panic Buying Sees UK Grocery Sales Set Record In March

(Alliance News) - Grocery sales in the UK grew at their fastest pace in a decade over the past 12 weeks as consumers stocked up ahead of lockdown measures made to contain the spread of Covid-19, numbers showed on Monday.

Shoppers in the UK controversially turned to stockpiling recently amid concerns about food shortages caused by the virus pandemic.

During the 12 weeks to March 22, sales rose 7.6% to GBP28.98 billion from GBP26.93 billion a year prior, according to data from Kantar.

March was also the "biggest month on record for grocery sales" with market growth of just shy of 21%.

Kantar added: "Growth was driven by people shopping more frequently and buying slightly more, with the average household spending an extra GBP62.92 during the past four weeks. 88% of British households visited a supermarket between Monday, March 16 and Thursday, March 19, making 42 million additional trips during that time. Alcohol sales rose by 22% year-on-year, as pubs and restaurants closed and shoppers stocked up on supplies for virtual gatherings at home."

Kantar's Fraser McKevitt noted that now pubs and restaurants have closed, 503 million extra meals are being prepared at home, contributing to the spike in grocery sales.

He added: "It has been an extraordinary month and social distancing measures have had a profound impact on all our daily lives – from the way we work and socialise, to how we shop and care for our loved ones.

"Those already missing their favourite haunts have been stocking up to recreate trips to the pub with friends over apps like Houseparty and FaceTime – boosting alcohol sales by 22%, an additional GBP199 million in the past month. Purchasing of food and drink items for store cupboards rose by 28% during the past four weeks and by the same again for frozen goods."

German discounters Lidl and Aldi continued to claw market share from the traditional "Big Four". None of the four largest UK grocers posted growth in market share.

All supermarkets achieved sales growth, however.

Lidl's 18% year-on-year rise was the largest of the lot. Lidl sales came in at GBP1.76 billion, nudging its market share up to 6.1% from 5.6% in the year prior.

Compatriot Aldi haf an 11% sales rise to GBP2.38 billion and its market share climbed to 8.2% from 8.0% in the year prior.

Among the "Big Four", J Sainsbury PLC booked the largest sales growth, rising 7.4% to GBP4.42 billion but its market share was stagnant at 15.3%.

Tesco PLC's market share fell to 26.8% from 27.3% despite sales rising 5.5% to GBP7.76 billion.

Walmart Inc's Asda had a 4.9% annual sales rise to GBP4.36 billion, but its market share slipped to 15.0% from 15.4%.

At Wm Morrison Supermarkets PLC, sales rose 4.6% year-on-year to GBP2.89, with market share down at 10.0% from 10.3%.

Of the London listed firms, online-only grocer Ocado PLC had the largest sales rise, up 13% to GBP432 million, and its market share edged up to 1.5% from 1.4%.

Iceland sales rose 12% to GBP632 million with market share up to 2.2% from 2.1% and at Waitrose, sales climbed 7.5% to GBP1.45 billion. The John Lewis Partnership's unit's share of the market was unchanged at 5.0%.

Finally, the Co-operative Group's grocery unit had a 9.4% sales hike to GBP1.80 billion and its market share climbed to 6.2% from 6.1%.

Kantar added: "Prices have been rising since the 12 weeks to January 1, 2017, following a period of grocery price deflation which ran for 30 consecutive periods from September 2014 to December 2016. Prices are rising fastest in markets such as sausages, oral analgesics and fresh bacon rashers."

Grocery inflation for the 12-week period was 0.9%.

McKevitt added: "We expect restrictions on movement and relatively full grocery cupboards will mean the incredibly high levels of shopping trips made in March will drop off over the coming weeks. Regular trips to smaller local stores are likely to continue, as people avoid travelling and queues at stores with one-in-one-out policies in place. Sales of long life and non-perishable items will slow as households work their way through stocks and consumers will focus on replenishing their supply of fresh foods."

"While much-reported panic buying has been concentrated to a relatively low number of individuals so far, we anticipate that this too will subside as consumers gain confidence in the retailers' abilities to maintain grocery supplies and keep stock on the shelves."

Tesco shares were 0.6% higher in London on Tuesday morning. Sainsbury's was 2.9% higher, Morrisons climbed 1.6% and Ocado was 1.0% higher.

By Eric Cunha; ericcunha@alliancenews.com

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