Online Shopping Surges as Supermarkets Adapt to New Normal
- Grocery market growth slows to 14.4% year on year
- Online shopping reaches new record market share of 13.5%
- Ocado sees highest growth with 45.5% increase in market share
- Morrisons fastest growing big four retailer, gains 10.2% market share
- Tesco loses 0.4 percentage points, now at 26.6%
- Sainsbury’s drops to 14.9%, Asda falls to 14.3%
- Iceland second fastest growing retailer with 29.2% increase, share up to 2.4%
- Co-op gains 7.1% market share, up 22.4%
- Lidl maintains 5.9%, Waitrose falls to 4.7%
- Average spend drops below £25 per trip but still higher than pre-pandemic levels
- Shoppers making fewer trips due to localized lockdowns and recession impact
The latest grocery market share figures from Kantar reveal a slowdown in take-home sales growth, reaching 14.4% year on year during the 12 weeks to August 9th. The market is transitioning from lockdown trends, with a £9.7bn spend over the past month – the lowest since February but still higher than pre-pandemic levels. Online shopping hit another record at 13.5% of sales. Ocado benefited most, registering a 45.5% growth and 1.8% market share. Morrisons was the fastest growing big four retailer with a 16% increase, now accounting for 10.2% of the market. Tesco, despite being close in growth, lost 0.4 percentage points to reach 26.6%. Sainsbury’s fell to 14.9%, losing 0.5 points, while Asda dropped to 14.3%. Iceland was the second fastest grower at 29.2% and share up to 2.4%. Co-op increased its share to 7.1% with a 22.4% growth. Lidl held steady at 5.9%, and Waitrose fell to 4.7%. Kantar’s Charlotte Scott said, ‘As lockdown eases, shoppers are less inclined to stockpile, average spend is £24 (vs. pre-Covid £19), but recession may lead to more cautious spending.’
Factuality Level: 9
Factuality Justification: The article provides accurate information about the latest grocery market share figures from Kantar, including specific percentages and trends in online shopping growth. It also includes insights from a consumer insight director at Kantar, providing context for the data and predictions on how consumer behavior may change during a recession.
Noise Level: 6
Noise Justification: The article provides relevant information about the latest grocery market share figures and online shopping trends during the pandemic, but it also includes some repetitive information and focuses on individual retailers’ growth rates which may not be as significant for understanding the overall trend.
Financial Relevance: Yes
Financial Markets Impacted: The grocery market and individual retailers such as Ocado, Tesco, Sainsbury’s, Asda, Iceland, Co-op, Lidl, and Waitrose.
Financial Rating Justification: This article discusses the latest grocery market share figures and sales growth for various retailers, which can impact their financial performance and potentially affect the stock prices of these companies. It also mentions changes in consumer behavior during the pandemic and its potential impact on spending habits.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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