Grocery sales drop since hospitality reopenings

// Grocery sales dropped in the first week that pubs and restaurants reopened for indoor trading
// Total sales fell 2.7% in the four weeks ending May 22

New research has found that grocery sales at UK supermarkets tumbled in the first week that pubs and restaurants reopened for indoor trading.

Despite the decline, demand remained elevated with many households still choosing to shop online despite the easing of lockdown restrictions.

Total sales fell 2.7 per cent in the four weeks ending May 22, with grocery sales declining by 6.7 per cent during the final week when the hospitality sector reopened, according to NielsenIQ.


READ MORE: Asda the cheapest grocer for branded goods – Which?


Food retail sales increased almost 11 per cent compared with the same period in 2019, with shoppers spending £9.1 billion over the four weeks.

Visits to stores were up by 20 per cent compared to the same period last year as travel restrictions eased.

The spend per visit fell to £17.40 from £21.50 in May last year.

Online shopping for groceries is also growing in popularity as 28 per cent of households are still shopping online in the latest four week period – the same figure as a year ago – and considerably more than the 17 per cent in May 2019.

Moreover, the online share of grocery sales remained strong at 13.8 per cent – exceeding the 13.4 per cent market share recorded in May 2020, but a slight decline on last month’s figure of 14.2 per cent.

“Despite lockdown restrictions easing, it is evident that online grocery remains popular with British consumers, with almost one in three households still choosing to shop online,” NielsenIQ UK head of retail and business insight, Mike Watkins said.

“This suggests that the shift of spend to online that we saw over the last year is now a more permanent fixture for many and part of regular grocery shopping routines.

“With supermarkets placing more investment in their rapid delivery and fulfilment, shoppers are no longer seeing this only as an option for one large shop. Usage is evolving to meet a wider range of shopper needs and meal occasions, no matter the basket size.

“Looking ahead, the challenge for food retailers is to reassess shopping behaviour now when their customers have opportunities to spend elsewhere across leisure, hospitality and travel, particularly when restrictions are permanently lifted at the end of the month.

“However, with the start of warm weather, Euro 2021 on the horizon, and the likelihood of more stay at home UK holidays, there will still be opportunities for supermarkets to increase basket spend and improve sales as we head into the summer months.”

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