Grocery sales flat as lockdown eases

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Grocery sales at supermarkets remain largely unchanged at -2.4% in the four weeks ended 19 June, new data reveals.

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Data released by NielsenIQ show a late May bank holiday weekend, combined with a short heatwave and the beginning of Euro2020, helped to maintain grocery sales, which remained flat (-0.1%) over the past 12 weeks.

Category performance shifted in response to changes in weather, the data reveals. For example, delicatessen sales grew by 13.5%, with soft drinks (+12.3%), bakery (+8.7%), and crisps, snacks and nuts (+4.1%) as consumers enjoyed the weather and entertained in small groups.

This is in contrast to sales for frozen (-9.3%) and packaged grocery (-12.8%), while spend also shifted away from beers, wines and spirits (-4.4%) as indoor drinking and eating returned.

Data from NielsenIQ reveals that online grocery sales declined by -6.9% over the past four weeks ended 19 June. However, 8 million shoppers – equal to 28% of all households – continue to shop online every four weeks.

NielsenIQ data shows that some pre-covid shopping behaviours are beginning to be re-established, with consumers continuing to visit stores more often, up 15%  compared to this time last year. As a result, the average spend per visit has reduced by 15% to £17.20.

Mike Watkins, NielsenIQ’s UK head of retailer and business insight, said: “With some lockdown restrictions still in place, British consumers have maintained spend at UK supermarkets, with sales remaining relatively buoyant over the last four week period against the high spend during the lockdown last year.

“Staycations for most families this year and the anticipated relaxation of remaining restrictions in July, are expected to be catalysts to a change in retail spend. Whilst more food spend will shift back to hospitality, the increase in seasonal travel and families and friends finally able to join together without restrictions, will give an added boost to food and drink categories at supermarkets.”