Supermarket sales in record surge during lockdown

Grocery sales surged at a record pace over the past three months as consumers were forced to eat at home during the coronavirus lockdown.

Sales rose by 14.3pc in the quarter to May 17 compared to a year earlier, and by more than 17pc for the four weeks to mid-May according to data firm Kantar – the sharpest increase since it began compiling figures in 1994. Online sales also rocketed.

However, shops took a major hit during the period from falling sales of snacks and drinks, with shoppers less likely to grab items on the go after non-essential travel was banned.

Lidl and Tesco led the charge over the 12 week period among the bigger supermarkets, with sales up 16.5pc and 12.7pc respectively.

Smaller retailers also benefited as shoppers stayed closer to home and sought to dodge long queues at the largest superstores. Iceland climbed to a 2.4pc market share, its highest proportion of sales in 20 years, while Co-op won a 7pc share of the market – a level it last achieved in 2011.

These findings back up the retail figures released earlier this month by the Office for National Statistics, which showed that food store sales were up by 11.2pc and 7.2pc in March and April compared with the same months last year as shoppers stockpiled in preparation for the coronavirus lockdown.

Conversely, non-food retail sales collapsed by a massive 53.8pc in April compared with last year as the majority of non-essential shops were forced to shutter.

Fraser McKevitt at Kantar said: "The most recent three-month period now includes both the pre-lockdown rush to the shops in March, and eight weeks of stay-at-home advice from Government – a combination which has resulted in the fastest growth in take-home grocery sales for over 25 years.

"While these are bumper figures, it remains true that the overall picture for some grocers will be less positive, as supermarkets continue to feel the impact of a considerable reduction in on-the-go spend on meals, drinks and snacks."

These categories - which are not included in the latest numbers - normally generate £1bn of sales in a 12-week period but this year's figures will be far lower, Mr McKevitt said.

Grocery inflation came in at 3.1pc over the 12-week period, with prices rising fastest among goods such as bacon, sausages and cooked meats.

May 7, the day before the VE Day bank holiday, was the biggest shopping day of the month, with £488m spent on groceries such as burgers, sausages and alcohol.

Separate research from Nielsen showed Britons spent a record £1.2bn buying groceries online during a four week period between April and May.

Nearly eight million households placed an online grocery order in the four weeks to May 16, up from 4.8m during the same period last year.

Mike Watkins at Nielsen said: "Following over eight weeks in lockdown, UK shoppers are more accustomed to restricted living, and have adapted their grocery shopping habits to match.

"Online has been a clear winner... as shoppers take advantage of retailers’ increased delivery capacity."

Sales at online retailer Ocado jumped by a third during the three months to May 17, Kantar said.