Data released today by NielsenIQ shows total till sales at supermarkets in the UK maintained steady growth at 4.6% in the four weeks ending 24 April, despite the partial reopening of the hospitality sector. However, online grocery sales growth slowed to 25% as shoppers returned to supermarket stores following falling cases of Covid-19 and the easing of the lockdown.
Sales growth in the online grocery channel has remained above 70% since the start of the pandemic in March 2020. However, in the last four weeks, as shopper confidence returned, visits to bricks & mortar stores increased by 3%, the first rise in a year, and a significant turnaround compared to the previous month’s 19% decline.
Although visits are up, NielsenIQ highlighted that spend per visit is declining and, as a result, in-store sales remained flat at £8bn, while online grocery sales remained strong at £1.3bn. The online share of grocery sales remained relatively stable at 14.2%.
Meanwhile, the data reveals that several of the categories that suffered most during lockdown have seen growth return as restrictions eased. This is most evident for health & beauty items where sales grew 27% year-on-year, followed by fresh goods such as deli (28%) and bakery (15.5%). This follows changes in consumer lifestyles as schools reopened, and there were more opportunities to socialise outdoors with picnics.
Despite the partial reopening of hospitality over the period, sales of beers, wines and spirits were up 9% over the four week period. However, some of the lockdown basket staples continued to decline, such as packaged grocery (-10%) and frozen (-5%).
In terms of retailer performance, Lidl (+18.2%) and Aldi (+10.4%) grew sales the fastest over the longer 12 week period. Meanwhile, Asda (+4.6%) and Sainsbury’s (+3.9%) were the fastest-growing supermarkets of the ‘big four’ retailers. Marks & Spencer (+3.9%) also experienced strong growth as non-essential retail reopened and more consumers also sought food on-the-go items.
Mike Watkins, NielsenIQ’s UK Head of Retailer and Business Insight, commented: “As lockdown restrictions ease across the UK, it is clear that shopper behaviours have changed once again with growing confidence and growing numbers returning to stores. Whilst online sales remain high, we’re noticing a rebalancing of shopper baskets as consumers spread their spend beyond the lockdown staples.”
He added: “Categories such as health & beauty, deli and bakery have experienced a boost in the last four weeks as the schools have returned and consumers are given more freedom to socialise and meet outdoors in a small group. With rules set to relax further within the next few weeks, consumer lifestyles will begin to adapt and it’s likely that we’ll see another change in grocery spend as cafes, pubs and restaurants fully reopen. How far this is set to change exactly, remains to be seen.”
NAM Implications:
- The key is how your sales compared…
- …by channel, category and retailer.
- Based on these NielsenIQ stats, suppliers now need to take a stance on where these splits of business will end up…
- …in areas that affect their business.
