Shoppers make fewer trips but spend more; C-stores increase share

British grocery sales grew 5.5 percent year-on-year in the four weeks to April 19 as consumers adapted to life under coronavirus lockdown, making fewer trips to stores but spending more when there, industry data showed on Tuesday.

Market researcher Kantar said that while April’s growth was significantly lower than March’s record growth of 20.6 percent when Britons were building-up stocks for the lockdown, sales were still £524 million higher than they were in April 2019.

It said on average, UK households shopped only 14 times for groceries over the four weeks, a record low and down from 17 in more normal times.

But the drop in shopping trips was matched by a corresponding uplift in the amount spent on each visit to £26.02 – the highest figure ever recorded by Kantar and £7 greater than last year.

Convenience stores, whether independently owned or run by the major grocers, have benefited greatly from people shopping closer to home, increasing their market share considerably.

“Convenience stores increased sales by 39 percent in the latest four weeks, now accounting for 16.3 percent of the market compared to 12.4 percent a year ago,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

“It should be noted, however, that this rise may be offset by the downturn in on-the-go consumption, which will have had a disproportionate effect on convenience shops.”

The researcher said online sales accounted for 10.2 percent of the total grocery market, having been about 7 percent prior to the crisis, with the greatest increase among older shoppers.

“Although not traditionally big users of e-commerce, over-65s spent 94 percent more on deliveries than they did a year ago,” McKevitt noted.

The Kantar data also highlighted other changes to consumer behaviour with more than 40 percent of consumers saying they are doing more home baking and sales of suet up by 115 percent and sugar by 46 percent over the four week period.

Alcohol sales also rose, as Britons replaced pub trips with virtual socialising.

While Friday and Saturday remain the most popular days to go shopping, disruption to the normal working week means the proportion of trips made Monday to Thursday has increased, making it harder to find quieter times.

“Social distancing also means that expenditure on other categories like clothes, food bought on the go and general merchandise will have been considerably lower, so for some retailers, the overall picture will be more modest,” said McKevitt

In the 12 week period to April 19 total grocery sales rose 9.1 percent year-on-year.

Market leader Tesco’s sales were up 7.2 percent, with Sainsbury’s, Asda and Morrisons up 8.4 percent, 3.5 percent and 4.3 percent respectively.

Sales at discounters Aldi and Lidl were up 8.8 percent and 14.8 percent respectively.

Grocery inflation was 1.9 percent over the 12 week period. Prices are rising fastest in markets such as sausages, bacon and lamb while falling in poultry, eggs and chocolate confectionery.