Online grocery sales rose 92pc in lockdown

Extra £24m spent on tea and coffee

THE COST of working from home is starting to add up with people spending an additional £24m on tea and coffee in the past four weeks and £19m on biscuits, according to the latest Kantar statistics.

Online grocery sales grew 92 per cent over the last month, as more than one in five households made an online order. Kantar said market growth of 17 per cent during the past 12 weeks was the fastest since records began in 1994.

Total sales reached a record £32bn, reflecting three months of increased grocery shopping during lockdown while most other retailers, bars and restaurants were either closed or experiencing significant reductions in trade.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “As lockdown restrictions are gradually eased and nonessential 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 per cent, down from 18.9 per cent in June. However, we are clearly a long way off a complete return to normality.

“Footfall was still 15 per cent lower during the past four weeks and the average spend on a supermarket trip was £25.05, 35 per cent more than the same period last year, as most people continue to eat more meals and snacks at home.”

Mr McKevitt said that despite

pubs, bars and restaurants reopening recently, more than half of consumers say they are still uncomfortable with visiting a pub and 42 per cent with visiting a cafe or restaurant.

“As a result, take-home alcohol sales were still up by 41 per cent this month as people were unable to or avoided drinking out,” he said. “The cost of working from home is also starting to add up for many.

“Convenience stores were a lifeline for many people in the early days of the crisis, providing essential supplies close to home. Sales from these types of stores are still up by more than a quarter year on year, but they attracted 2.6 million fewer shoppers through their doors than at the peak of lockdown in April.

“Consumers are clearly growing more comfortable getting in their cars or taking public transport, as the average distance travelled to a grocer has gone up to 4.9km, a 10 per cent increase from the April low.”

The challenging economic climate hasn’t yet had a meaningful impact on what shoppers are buying.

Mr McKevitt said: “Even with the uncertainty that many consumers are facing, branded goods, which are typically more expensive, are outperforming cheaper, own label alternatives and grew sales 20 per cent this period.

“In fact, it is the number one brands in each category that are typically winning share from rivals. Of the retailers’ own ranges, it’s the more premium lines, such as Tesco Finest or Sainsbury’s Taste the Difference, that are growing fastest. It seems shoppers are looking for small ways to treat themselves at home.”

Promotional activity picked up in the latest four weeks, with 29 per cent of sales including a discount.

Retailers scaled back promotions at the start of lockdown as they prioritised serving customers and keeping shelves full.