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Summary
- Kantar said online grocery sales accounted for a record 15.4 per cent of market share in the four weeks to 21 February, from 8.7 per cent in 2020.
- British supermarket giant Tesco’s market share rose for the first time by 0.2 per cent to 27.4 per cent in February since December 2016.
UK-based market research company Kantar has said that UK online grocery sales accounted for a record 15.4 per cent of market share in the four weeks to 21 February, rising from 8.7 per cent on a year-on-year basis. The rise was attributed to all the major supermarkets offering home deliveries amid the pandemic and as people preferred to remain at home to maintain social distancing, ordering online.
Fraser McKevitt, Kantar’s head of retail, said that almost 25 per cent of households opted for online grocery shopping in February and that about 3 million tonnes of food deliveries had been made in 2020. McKevitt added that the online shopping trend seemed to be sticking due to customers reporting a happier experience compared to shopping in stores.
Supermarkets benefit
British supermarket giant Tesco’s (LON: TSCO) market share rose for the first time by 0.2 per cent to 27.4 per cent in February since December 2016. The growth was partly supported by the surge in online sales, according to Kantar observations.
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In addition to the rise in online sales, the FTSE 100 listed supermarket had also witnessed growth at its large supermarkets and smaller Tesco Express stores added McKevitt.
Similarly, the other big four supermarket companies reported a double-digit sales for the same period. Sainsbury’s (LON: SBRY) sales rose by 12.1 per cent to hold its market share of 15.6%, while Asda sales were 10.3% higher compared with a year ago.
Meanwhile, discount grocery stores such as Aldi and Lidl lost market share for the first time in more than a decade as both had none or very little exposure to online shopping services. Aldi’s market share fell to 7.5 per cent from 7.9 per cent a year ago, while Lidl’s fell to 5.7 per cent from 5.8 per cent in the previous year.
According to Kantar data, households spent an additional £15.2 billion in grocery sales, with an average household’s spend increasing by £500.
Want to know more? Do read: Why is Tesco demanding a 1% sales tax on online retailers?
Kantar’s McKevitt also added online shopping trends could witness a change with the easing of lockdown restrictions as outside dining, school canteens, and other options re-open.
Share performance
FTSE 100-listed company Tesco’s (LON: TSCO) stock prices closed at GBX 223.50, up by 0.90. Other FTSE 100 supermarket giants, J Sainsbury plc (LON: SBRY) was up by 0.63 per cent to GBX 222.70 and Morrisons (LON:MRW) shares traded at GBX 170.50, up by 0.65 per cent on 3 March 2021, at around 9:26 AM GMT+1.
