Online grocery appeal dips as Britons return to stores

The proportion of Britons buying groceries online dipped to 20 per cent in the 12 weeks to Aug. 8, the lowest level seen since October last year, as shoppers returned to stores, market researcher Kantar said on Tuesday. 

It said the share of grocery sales made online was 13.0 per cent, down from a peak of 15.4 per cent in February.

Take-up of online grocery shopping grew rapidly during the Covid-19 pandemic, but as lockdown restrictions have loosened a divide is beginning to emerge.

"Those who have come to love the convenience of an online shop are sticking with it, ordering regularly and spending on average more than two-thirds of their total grocery bill online. But the unconverted are starting to drop away, preferring to get back to store instead," said Fraser McKevitt, head of retail and consumer insight at Kantar.

This shift away from online contributed to Ocado Group Plc's sales falling by 0.7 per cent year-on-year over the 12 weeks, its first decline on record, Kantar said, though it noted that sales were up 44.4 per cent compared with 2019.

Market leader Tesco Plc was the best performer of Britain's big four grocers, with sales down 1.8 per cent. Sainsbury's, Morrisons and Asda's sales fell 2.6 per cent, 4.7 per cent and 6.2 per cent, respectively.

Total UK grocery sales were down 4.0 per cent over the 12-week period year-on-year and down 0.5 per cent over the latter four weeks, reflecting strong growth in last year's lockdowns.

Grocery sales were 9.9 per cent higher, however, in the latest 12 weeks compared with the same period in 2019, before the pandemic started to impact trade.

Kantar said consumers made an extra 108,000 shopping trips in the latest four-week period versus last year, while average basket sizes were 10 per cent smaller.

It said grocery prices rose 0.4 per cent in the four-week period.

"Although relatively low, this four-week level of inflation would still add 19 pounds ($26.29) to the average household's annual grocery bill," said McKevitt.

"It's expected that inflation will rise again in the coming months, and as a result we'll likely see shoppers seeking to tighten the purse strings and save where they can."