Grocery sales rise at their fastest rate in 25 years

GROCERY sales are rising at the fastest rate for more than quarter of a century as shoppers flock online and to local stores during the Covid-19 lockdown.

industry data from research group Kantar showed supermarket spending hit £31.4bn in the 12 weeks to may 17, nearly £4bn more than in the same period last year.

The 14.3pc rise was the biggest since comparable records began in 1994, as families spent on food for those who would normally be at work or in school.

Alcohol sales from supermarkets soared – up 50pc in the four weeks to mid-may – as people drink at home rather than in pubs and restaurants.

New rules allowing people to meet a friend in the park led to a big jump in sales of picnic items including dips, crisps, and fizzy drinks. Warmer weather encouraged shoppers to spend £17m more on burgers and £24m more on sausages year-on-year.

Ocado and the Co-op were among the major beneficiaries as shoppers went online and visited local shops rather than larger supermarkets. Online sales in the most recent four weeks were up 75pc on a year ago, and deliveries now account for a record 11.5pc of all sales.

Nearly one in five households ordered online in the four weeks, 1.6m more than this time last year and experts think many will never return to stores.

Ocado benefited, seeing sales rise by 32.5pc over the 12 weeks to may 17, according to Kantar.

Co-op is also booming – sales are up 30.8pc on a year earlier. it now has a 7pc market share, a level last achieved in 2011.

iceland climbed to a 2.4pc share of the market, its highest level for 20 years, as sales rose 28.6pc in 12 weeks. The Big Four supermarkets, and Aldi, which has no online division, have lost market share in the last 12 weeks, compared to 2019.

Thursday may 7, the day before the Friday Bank Holiday to mark 75 years since VE day, was the biggest shopping day – with £488m spent on takehome groceries.