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Indies hardest hit as grocery sales fall

Indies hardest hit as grocery sales fall

Grocery sales fell by 3.8 per cent over the 12 weeks to 23 January, with independent stores suffering the worst decline year on year, according to the latest grocery market share figures from Kantar.

Symbols and independents have seen sales fall by 13.5 per cent in this period, but the year-on-year figure reflects a tough comparison against the high demand of the lockdowns at the start of 2021.


When compared to the same period in 2020, before the pandemic struck, spending remains 4.6 per cent higher at independent stores. Overall, sales are 8 per cent higher than the same period in pre-pandemic 2020.

Only three retailers - Ocado, Lidl and Aldi - recorded year-on-year growth this period, but every single grocer boosted its sales over the last two years.

Commenting on the figures, Fraser McKevitt, head of retail and consumer insight at Kantar, said households are facing a cost-of-living squeeze, with the latest four-week grocery price inflation standing at 3.8 per cent, a 0.3 percentage point rise from 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,” McKevitt said.

“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.”

Pre-pandemic patterns began to return as the nation socialised more, heading back into the office and city centres, with shoppers buying fewer groceries and returning to physical stores, McKevitt added.

“Since the first lockdown in March 2020, shoppers have been buying in bulk and visiting the supermarket less often. But basket sizes are now 10 per cent smaller than this time last year, hitting their lowest level since the beginning of the pandemic, while footfall increased by 5 per cent as every major retailer was busier in their stores,” he said.

“There was also evidence of people scrubbing up as the work from home directive ended and socialising increased. In fact, razor blade sales rose by 14 per cent and spend on deodorant increased by 20 per cent as Brits strived to make themselves presentable for the start of 2022.”

The data shows that Veganuary and Dry January led to strong results for no- and low-alcohol as well as plant-based products.

“Dry January converts pushed up sales of alcohol-free beer by 5 per cent and the numbers for retailer's own-label ranges marketed as healthy were even stronger, increasing by 8 per cent. Though fresh fruit, salad and vegetable sales were down compared with last year, plant-based products proved more popular than ever. A record 10.7 million households bought at least one item that was a dairy alternative, a meat substitute or labelled as plant-based this January. Sales growth for these veggie favourites was 0.5 per cent, well above the wider grocery market,” McKevitt noted.

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