UK FMCG sales fall in May, online grocery continues to grow

UK FMCG sales fall in May, online grocery continues to grow

Grocery sales in UK supermarkets fell by 6.7% in the first week of reopening, and total grocery sales fell by 2.7% in the four weeks to May 22, 2021. UK shoppers continue to shop online, with shopper penetration remaining high at 28% of households, spending £1.25 billion online in the past four weeks.

 

However, despite the drop in grocery sales, food retail sales were up nearly 11% compared to the same period in 2019, with shoppers spending £9.1 billion in the four-week period.

 

In the absence of restrictions on non-essential travel, NielsenIQ data also shows that visits to stores have increased by 20% compared to the same period last year. However, as the number of visits has increased, spend per visit has fallen from £21.50 in May 2020 to £17.40. Shoppers will also spend more in travel outlets and other "takeaway" venues.

 

NielsenIQ data shows that UK shoppers continue to embrace online grocery shopping, with 28% of UK households still shopping online in the last four weeks – the same figure as a year ago – up significantly from 17% in May 2019. As a result, Brits spent £1.25 billion online in the last four weeks to 22 May.

 

Additionally, the online share of grocery sales remained strong, reaching 13.8%, exceeding the 13.4% market share recorded in May 2020 but down slightly from 14.2%2 last month.

 

In terms of category performance, prepared foods (+18.6%) was the fastest growing supercategory, followed by health and personal care (+16.2%) and bakery (+10.8%). This was due to the easing of lockdown restrictions, more opportunities for outdoor socializing, and many people returning to the office. And as consumers returned to pubs, bars and restaurants, frozen food sales fell the most ( -14.9%), while packaged food (-10.1%) and beer, wine and spirits (-6.7%) saw the largest declines.

 

Over the past 12 weeks, Lidl (+17.3%), Aldi (+9.5%) and M&S (+7.6%) led growth, while Sainsbury’s (+0.4%) was the fastest growing retailer of the ‘big four’ supermarkets, ahead of only Tesco, Asda and Morrisons.

 

Mike Watkins, head of UK retailer and business insights at NielsenIQ, said: “Despite the easing of lockdown restrictions, it’s clear that online grocery shopping remains popular with UK consumers, with almost a third of households still choosing to shop online .

U.K.

Online Grocery

Fast Moving Consumer Goods

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