Kantar's latest figures are out showing that take-home grocery sales growth accelerated to 10.6% in the four weeks to 4 October, as shoppers geared up for new lockdown restrictions.
There is limited evidence of consumers stockpiling – the seven days from Monday 21 to Sunday 27 September were the busiest since March, but supermarket trips were well below those made just prior to the first national lockdown.
Online sales in the past month grew by 76% year on year, making this a strong month for Ocado, growing its 12-week ending sales by 41.9% thanks to its new partnership with Marks & Spencer.
Fraser McKevitt, head of retail and consumer insight at Kantar, says: “Shoppers are moving a greater proportion of their eating and drinking back into the home.
"This is likely a response to rising Covid-19 infection rates, greater restrictions on opening hours in the hospitality sector, and the end of the Government’s Eat Out to Help Out scheme.
"Alcohol sales alone were worth £261 million more to the grocers this month than last year, with pubs, bars and restaurants limited by the 10pm curfew.”
Despite an increase in Covid-19 transmissions and tightening restrictions, there is only limited evidence of consumers stockpiling goods at a national level in the past month.
Mr McKevitt continues: “The seven days from Monday 21 to Sunday 27 September were the busiest since March, with 107 million trips recorded, but that number was nowhere near the 175 million seen just prior to the first national lockdown.
"That said, sales of toilet roll and flour rose by 64% and 73% during the week, showing that consumers were wary of potential new restrictions.
"37% of households bought toilet roll in that time, compared to the more typical 25% the week before, meaning increases were down to a greater number of buyers, rather than people packing trollies.”
Lidl has been in continual double-digit growth since December, accelerating its rate in the past 12 weeks to 11.7% while Aldi recorded growth of 7.8%, and currently holds 8.0% of the market.
Sales made digitally remains unchanged from last month at 12.5%, suggesting that many shoppers are choosing to stick with deliveries as the pandemic develops.
Fraser McKevitt comments: “Ocado has increased the number of shoppers using its service in the latest period – the only retailer to do so – adding 22,000 customers. Its new partnership with Marks & Spencer is no doubt part of the appeal.
"Since it started to sell M&S products on 1 September, two-thirds of Ocado shoppers have ordered Percy Pigs at some point, including an introductory period when the famous sweets were included free. Ocado’s share of the market rose this period by 0.4 percentage points to 1.8%.
“Waitrose is keeping pace with its own online offer. Although starting from a relatively low base, it was once again the fastest growing retailer online this month. Waitrose also increased sales through its physical stores, with overall sales increasing by 8.9%.”
Iceland, which is marking its 50th birthday in November, also had cause for celebration, as growth of 17.3% took its market share to 2.3%.
Changing personnel was the major story for Tesco and Asda in the latest period.
“New Tesco CEO Ken Murphy took over the reins at Britain’s biggest supermarket in October, with positive news to report – Tesco maintained its market share year on year for the second period in a row," said Mr McKevitt. "It now holds a 26.9% slice of the market – backed by sales growth of 9.2%.
"Frozen, an early focus for the retailer’s Clubcard-only promotions, was the single fastest growing food category for Tesco. Asda, which welcomed new owners this month, saw sales grow by 5.4%, but its market share fell to 14.4%.”
Morrisons also gained market share, up by 0.2 percentage points to 10.1% on the back of 11.5% growth, while Sainsbury’s increased sales by 6.8% and posted a market share of 14.9%.
The convenience channel, which was vital to shoppers early in the pandemic, has seen annual growth rates fall back in line with the market, with the single biggest operator, Co-op, held market share at 6.6%, with growth of 9.3%.
Two shops in Cornwall have been ordered to close for three months for selling illegal tobacco.
Truro Magistrates’ Court on Tuesday (25) granted the closure orders for Saltash Smoke Point, Fore Street, Saltash and Zabka, Commercial Street, Camborne.
Devon and Cornwall Police submitted two closure order applications to the court after Cornwall Council’s Trading Standards team supplied evidence of illegal tobacco sales at both premises.
The application was supported by intelligence from members of the public that both shops had been selling illegal vapes, and supplying vapes to under 18s.
The application also included information about the public health risks of illegal tobacco, as well as the potential harm vapes can cause when used by children.
Elizabeth Kirk, team manager at Cornwall Council’s Trading Standards, said: “I’m delighted that we have been able to disrupt the illegal activity taking place at these premises.
“This is a brilliant example of how we work with our partners to target businesses that are not complying with the law and I’d like to thank Devon and Cornwall Police for all their work in securing these orders from the court.
“We will not tolerate people putting our communities at harm and will take action when there is evidence that shops or individuals are supplying illegal products.”
Ruth Goldstein, Assistant Director of Public Health at Cornwall Council, said, “Smoking is responsible for almost 1,000 deaths in Cornwall each year and the sale of cheaper illegal tobacco can cause serious harm to public health because it reduces smokers’ motivation to quit.
Sophie Curtis, Partnership Inspector for Cornwall at Devon and Cornwall Police, said, “I’m pleased at the outcome of these closure orders which send a message that the illegal sale of tobacco products or of illegal, unregulated vape paraphernalia won’t be tolerated in Cornwall.
"The same goes for the sale of vape products, regardless of their provenance, to children. All of these things bring harm to our communities.
“This is one example of effective partnership working. Sara Young, the Vulnerability Lawyer for Devon and Cornwall Police in Cornwall worked closely with Cornwall Council to put together the closure orders based on the work undertaken by Cornwall Trading Standards and the intelligence submitted by members of the public."
WHSmith has on Friday announced the sale of its UK high street business to Modella Capital, in a move to concentrate on its higher-growth travel retail markets.
The deal, which values the high street business at £76 million on a cash and debt-free basis, will see WHSmith receive gross cash proceeds of £52 million.
The sale marks a significant strategic shift for WHSmith, allowing the management to focus on the substantial growth opportunities within its key travel markets. Over the past decade, WHSmith has increasingly focused on its travel business, which in the last financial year, accounted for 75 per cent of the group's revenue and 85 per cent of its trading profit.
“As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel,” Carl Cowling, group chief executive, commented
The travel business operates across 32 countries and includes major airport locations, hospitals, and rail stations, both in the UK and internationally. The company will continue to trade under its historic 233-year-old brand name within its travel divisions.
“high street is a good business; it is profitable and cash generative with an experienced and high-performing management team. However, given our rapid international growth, now is the right time for a new owner to take the high street business forward and for the WHSmith leadership team to focus exclusively on our travel business," said Cowling.
Under the new ownership, the high street business will be led by Sean Toal, the current CEO of the high street business, and will eventually rebrand as TGJones, following a short transitional period operating under the WHSmith brand. All stores, colleagues, assets, and liabilities of the high street business will transfer to Modella Capital as part of the transaction.
Retailers association welcomes new chapter for WHSmith high street stores
The British Independent Retailers Association (Bira) has welcomed the announcement, while expressing cautious optimism for the future of these important retail spaces.
“The sale of WHSmith's high street business to Modella Capital represents a significant change for the UK retail landscape, but importantly, it appears these stores will continue to operate under new ownership rather than close entirely,” Andrew Goodacre, Bira CEO, said.
“We welcome Modella Capital's investment in these high street locations and hope this will secure the future of these stores, protect valuable jobs, and maintain essential services like Post Office counters that many communities rely upon.
“As champions of retail diversity and vibrant high streets, Bira sees potential in this transition. We hope Modella Capital will bring fresh ideas and renewed investment to these locations.
"The high street continues to face significant challenges, but this acquisition shows there is still value and opportunity in town centre retail when approached with the right business model and investment.”
The Co-op Group has today (28) re-affirmed its commitment to the independent retail sector through the launch of Co-op Wholesale, with its fascia brand being fully retained as part of the suite of services available to Co-op’s independent partners.
Drawing on over 160 years of wholesale heritage, this move re-enforces the Co-op Group’s commitment to drive increased value for independent retailers, whilst fuelling expansion ambitions into broader corporate business to business markets, and vision to deliver the best of Co-op to its trusted partners.
Marking a pivotal milestone in the growth trajectory for the business, Katie Secretan, has also been appointed as the Managing Director for Co-op Wholesale.
Joining Nisa in January 2024, previously holding the position of Retail & Sales Director, Katie has been instrumental in unlocking growth opportunities for both current retailers and prospects, as well as new corporate partnerships and building the foundations to support the businesses ambitious growth targets.
Jerome Saint-Marc, Managing Director for B2B and Growth at Co-op, said, “Our commitment to all our partners remains as strong as ever, to ensure their businesses drive profitable growth now and for generations to come.
"Our move to Co-op Wholesale is a strategic step forward for us and one we’re immensely proud of. It’ll allow us to deliver expansive growth and operational excellence for our B2B partners, bringing them the products they need, at the right price, when they need them.
“With a new leadership team, strategy and vision, we have one clear goal and that is to drive growth by bringing the best of Co-op to our partners. And following the expertise, drive and passion we’ve witnessed from Katie in the last year, I am delighted that she will be stepping into her role to power the business forward.”
Co-op Group launches Co-op Wholesale
Co-op Group
Katie Secretan, Managing Director for Co-op Wholesale, said, “We’re clear that this is more than just a supply relationship. Co-op Wholesale is backed by a business built on purpose and we’ll use our platforms to champion what matters most to our diverse partner base, as we know that we can make greater impact when we work together.
“Under Co-op Wholesale, we’re already making significant growth opportunities through corporate accounts as well as traditional retailers, and we’re looking forward to seeing what we can achieve together.”
Despite the current economic and social headwinds facing the retail sector, the Co-op Group remains committed to and excited by the longer-term prospects for the convenience market and the vital role played by independent retailers within the sector.
With significant buying power, industry-leading quality own-brand products, and a supply chain built for convenience, Co-op Wholesale can deliver an unrivalled proposition that will power growth for both independent retailers and corporate partners alike, in today's fiercely competitive market.
Co-op prides itself on delivering best in class products and its own brand range remains a key differentiator for its B2B proposition.
The brand will continue to innovate in its range, to help its partners stand out from competition and drive greater loyalty with shoppers.
Working in parallel with insight-driven recommendations and category leadership for key convenience missions, this partnership will optimise every store location for maximum impact to drive sustainable growth.
The adaptable model from Co-op Wholesale can help any partner scale and drive sustainable growth, with the flexibility to operate their store to grow, their way.
Keep ReadingShow less
x-hoppers debuts new AI upgrades built for retail’s frontlines, boosting security, team flow and in-store efficiency
x-hoppers, the leading AI-powered in-store communication platform, has announced new features to its connected store suite, designed to strengthen loss prevention, boost team productivity and automate key retail tasks, all in a single, unified system.
By combining hands-free headsets, AI-powered theft detection and real-time automation tools, x-hoppers helps retailers cut shrink, improve team coordination and deliver faster, safer in-store experiences. Built for the pace of frontline work, it replaces disconnected tools with one seamless solution, supporting associates and elevating the customer journey, from stockroom to checkout.
Retailers attending the Retail Technology Show (April 2-3, ExCeL London, Booth C40) will be the first to experience these innovations, already proven to reduce shrink by 60 per cent and detect up to 26 theft incidents per store daily, all before they escalate.
“Retail doesn’t slow down and neither can technology,” said Graham Dixon, chief technology officer, x-hoppers. “That’s why our team pushes continuous updates across AI, automation and usability. x-hoppers isn’t just a product, it’s a growing ecosystem designed to meet the changing pace of store life. Every feature we add is tested in real-world environments to ensure it works for retailers, not the other way around.”
Latest enhancements
The newest release reflects x-hoppers’ commitment to solving store-level pain points with practical, intelligent tools that scale.
1. AI-Powered Security & Theft Prevention
Enhanced AI Theft Detection with AIVA (AI Video Alerts): x-hoppers’ proprietary AI-powered security solution now builds on its proven success with upgraded gesture recognition technology, offering greater precision in detecting suspicious behaviour and identifying high-risk theft periods.
StaffSafe Integration: Theft-deterrent announcements help de-escalate incidents before they happen, while live alerts connect teams with remote intervention units for immediate response.
2. Workforce Optimisation
AI Assistant 2.0: Employees can now log in via voice authentication, receive real-time task recommendations and access multi-language training.
Intelligent Voice and Chat Agents: These digital agents bridge the gap between online and in-store operations, resolving customer queries, assigning tasks, and escalating alerts, all without manual input.
Dedicated Mobile App: The new channel offers greater flexibility, featuring push-to-talk, theft alerts and real-time notifications.
Customisable AI-Driven Smart Headsets: Designed for the dynamics of frontline work, now available in various styles for retail associates, security personnel and managers.
3. Task & Store Automation
MOOS Smart Shelf Integration: AI-driven restocking alerts, high-value item tracking and automated inventory replenishment, transforming stores into self-optimising environments.
Trello Integration: The new integration bridges task management and in-store execution by sending card assignments directly to the corresponding associate’s headset, turning digital workflows into immediate frontline action.
Proven at Scale
Since launching in April 2024, x-hoppers has already driven measurable results, with clients reporting:
60% reduction in shrink, detecting an average of 26 theft incidents per day before escalation.
35% increase in sales through faster, more personal customer service.
50% faster employee onboarding with real-time AI training and support.
3+ hours saved per employee per day through automation and hands-free communication.
Keep ReadingShow less
Jars of Nescafe Gold Instant coffee, part of food giant Nestle's portfolio, are seen at the company's headquarters in Vevey, Switzerland, February 21, 2024.
If your favourite coffee beans have vanished from the shelves, don't worry - they will return soon. The bad news is they will be up to 25 per cent more expensive.
Roasters such as Lavazza, Illy, Nestle and Douwe Egberts maker JDE Peet's are currently in talks with retailers about passing on costs from a near doubling of arabica coffee prices over the past year, according to eight industry sources.
Raw arabica prices have spiked due to four successive seasons of deficit as adverse weather makes it harder to grow enough of the delicate beans to meet consumer demand.
As roasters press for price hikes, grocery stores and supermarkets push back, postponing signing new supply deals to the point where some have run out of coffee stock.
In one such example Dutch supermarket chain Albert Heijn, the country's largest, ran out of coffee products like Douwe Egberts and Senseo.
The products returned to the shelves on 20 March, albeit at higher prices, a spokesperson for Albert Heijn said after the firm concluded talks with JDE Peet's, one of the world's top coffee roasters.
"JDE's purchase prices have increased significantly. We will absorb part of this price increase to keep the products affordable," the Albert Heijn spokesperson said.
L'or and Douwe Egberts coffee packets are seen at a Carrefour supermarket in Brussels, Belgium, May 22, 2020. REUTERS/Francois Lenoir/File Photo
JDE Peet's, which has warned of a profit decline this year due to surging coffee costs, said the stand-off with buyers in the Netherlands and Germany resulted in some of its products missing from the shelves. It added, however, that it has since concluded 90 per cent of its price negotiations globally.
Global prices for arabica, typically used in roast and ground blends, have gained more than 20 per cent this year after soaring 70 per cent last year as Brazil - producer of nearly half the world's arabica - suffered one of its worst droughts on record.
On average, the raw beans account for about 40 per cent of the wholesale cost of a bag of roast and ground coffee.
That means that if last year's raw bean price jump was passed through in full this year, it would equate to a 28 per cent price rise to the consumer, said Reg Watson, director of equity research at Dutch Bank ING.
Watson believes prices will rise 15 per cent-25 per cent and that in some markets consumers may feel the hike in one shot.
Rationing
Even steeper rises are taking place in countries whose currencies have weakened significantly against the dollar. These include Brazil, the world's second largest consumer of the beverage as well as the top grower.
According to documents sent to clients and seen by Reuters, 3 Coracoes, a large Brazilian roaster, raised roast and ground prices by 14.3 per cent on March 1, having previously hiked them by 11 per cent in January and 10 per cent in December.
3 Coracoes did not respond to requests for comment.
Brazilian coffee roasters association ABIC said price rises in the country are steep because in local currency terms, raw bean prices rose 170 per cent in Brazil last year.
In response, Brazilian shop shelf prices have surged 40 per cent, with more increases coming as early as this month, said ABIC.
"People are already rationing, changing their habits. If before they used to make a big thermos at home for the family, sometimes throwing what was left down the sink, now they cut the waste," ABIC president Pavel Cardoso told Reuters.
Data prepared for Reuters by market research firm Nielsen shows the volume of roast and ground coffee sold in North America and Europe, by far the world's biggest consuming regions, fell 3.8 per cent last year as prices rose 4.6 per cent.
With price rises this year expected to be far steeper, the decline in sales volumes should widen.
Folgers coffee maker J M Smucker, which sells to US retailers such as Walmart and Target, expects a decline in volumes in its fiscal year starting in May as it raises prices again, its chief financial officer Tucker Marshall said at a conference call earlier this month.
The firm, which also sells Dunkin and Cafe Bustelo coffee, already raised prices last June and October.
Living hand to mouth
Of equal concern for roasters is the fact that cash strapped consumers are pushing back against higher priced goods by bargain hunting or trading down to supermarket brands like Tesco's finest.
These brands, which the industry calls "private label", include many products beyond coffee and are produced in-house by supermarkets in order to cut on costs and provide consumers with cheaper alternatives.
Data prepared for Reuters by Chicago-based market research firm Circana shows that in terms of volumes sold, US private label coffee's share of the total market grew by 13 per cent between 2021 and 2024, from 20.51 per cent of the total market to 23.12 per cent.
Roasters are, as such, in a bind. They can absorb some cost increases and hope consumers keep buying, or they can raise their prices so that their profit margins don't fall.
Either way the result is a hit to overall profits that hasn't even spared coffee house chains such as Starbucks - far less exposed than the likes of JDE Peet's as raw beans account for less than 2 per cent of the cost of a cup of coffee in a cafe.
Roasters and traders are meanwhile buying as little coffee as possible as they struggle to pass on costs to supermarkets. An executive at a large storage sector firm said coffee depots close to US ports currently have half their normal volumes.