Asda enjoys growth ahead of the market BUSINESS:
Grocery sales show marked slowdown
The Leeds-based supermarket chain Asda has grown ahead of the wider grocery market as it increased its market share during the latest lockdown, according to new industry data.
The latest figures from Kantar shows take-home grocery sales rose by 7.4 per cent during the 12 weeks to March 21, 2021.
THE SUPERMARKET chain Asda has grown ahead of the wider grocery market as it increased its market share during the latest lockdown, according to new industry data.
The latest figures from Kantar shows take-home grocery sales rose by 7.4 per cent during the 12 weeks to March 21, 2021.
This is a marked slowdown compared with previous months as supermarkets start to annualise sales against the “extraordinary spending” in 2020, Kantar said. Sales over the most recent four weeks were down by 3.0 per cent versus the same time last year.
In the month that CEO Roger Burnley announced he will be standing down later in the year, Asda grew ahead of the market and edged up its market share from 15.0 per cent to 15.1 per cent. Morrisons’ sales growth of 8.7 per cent meant a share increase of 0.1 percentage points to 10.1 per cent, while sales at Sainsbury’s rose by 7.3 per cent to hold share steady at 15.3 per cent, according to Kantar.
Tesco increased its sales by 8.5 per cent and once again gained share to capture 27.1 per cent of the market, up by 0.3 percentage points compared with the same 12 weeks last year.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The anniversary of the first national lockdown means we begin to compare grocery sales against the record-breaking levels seen in the early days of the pandemic and growth has perhaps not surprisingly dipped over the past four weeks as a result.
“This time last year, Brits were adjusting to schools and offices closing and making extra trips to the supermarket to fill their cupboards for lockdown. To put that into context, shoppers made 117 million fewer trips to the supermarket this month compared with those fraught weeks in March 2020.”
Grocery spending remains considerably higher than prepandemic levels.
Mr McKevitt said: “It’s important to look at these numbers within the bigger picture, and two-year growth figures allow us to examine retailer performance amid these moving parts.
“While grocery growth has slowed against 2020, sales are still much higher than the same 12 weeks in 2019 – up by 15.6 per cent. As restrictions on dining out continue, the average household spent an extra £134 on takehome groceries compared with this period two years ago.”
Mr McKevitt added: “Warmer temperatures and lighter evenings mean many of us are planning outdoor get-togethers over the long weekend. 61 per cent of people are looking forward to socialising with friends again and 23 per cent of households are planning to dust off the barbecue if the weather is kind to us.
“There are signs of people making a special effort this year and grandparents might be showing up with additional treats after 12 months of restrictions. Shoppers had already spent £37m on hot cross buns and £153m on Easter eggs by March 21 – £48m more than at the same stage last year.”
Online grocery growth slowed in the past four weeks, with the first signs that shoppers are returning to physical stores.
Mr McKevitt said: “Online sales were 89 per cent higher than this time last year, which is still impressive, but the channel’s share of the market dropped back to 14.5 per cent from the record of 15.4 per cent in February 2021.”