UK grocery sales have fallen by 3.8 per cent over the 12-weeks to 23 January, according to the latest figures from Kantar.

However, sales were still 8 per cent higher than the same period in pre-pandemic 2020. The figures are largely a result of comparisons against the high demand experience throughout national lockdowns at the beginning of 2021.

The data analytics company also revealed that the latest four-week grocery price inflation stands at 3.8 per cent, 0.3 per cent higher than in December.

“Prices are rising on many fronts, and the weekly shop is no exception. Like-for-like grocery price inflation, which assumes that shoppers buy exactly the same products this year as they did last year, increased again this month,” said Fraser McKevitt. “Taken over the course of a 12-month period, this 3.8 per cent rise in prices could add an extra £180 to the average household’s annual grocery bill.

“We’re now likely to see shoppers striving to keep costs down by searching for cheaper products and promotions. Supermarkets that can offer the best value stand to win the biggest slice of spend.”

Online grocery

Online orders made up 12.5 per cent of all grocery spend, nearly double the pre-pandemic proportion.

McKevitt said that while digital purchases were down year-on-year by 15 per cent, it’s key to note that this is in comparison to a time when there were restrictions in place that forced people to stay indoors where possible.

Digital orders accounted for 12 per cent of all grocery spend, almost double the pre-pandemic proportion.

Supermarket retailer results

Only three grocery retailers recorded year-on-year growth this period, but every single grocer boosted its sales over the past two years.

Ocado sales grew by 2.3 per cent over the past 12 weeks, with its share of the grocery market increasing by 0.1 per cent to 1.8 per cent. That number almost doubles in London specifically, where the grocer accounts for 3.4 per cent of all sales.

Lidl and Aldi recorded simultaneous growth for the first time since June last year. Lidl was the fastest growing physical retailer and increased its sales by 1.2 per cent, boosting its market share by 0.3 per cent to 6.2 per cent.

Aldi gained an additional 1.1 million shoppers over the past 12 weeks, helping its share grow by 0.4 per cent to 7.8 per cent. The grocer’s sales also rose by 1.1 per cent.

Both Tesco and Waitrose performed ahead of the market over the past 12 weeks and increased share. Tesco’s share moved up from 27.3 per cent last year to 27.9 per cent, marking a full year of market share gains for the retailer.

Waitrose saw the greatest footfall increase of any supermarket, helping its share increase by 0.1 per cent to 5.1 per cent.

Sainsbury’s now holds 15.6 per cent of the market, Asda 14.4 per cent, and Morrisons 9.9 per cent. Co-op share stands at 5.7 per cent and Iceland at 2.4 per cent.

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