retail

UK supermarkets’ online sales fall despite Euro 2020 alcohol surge

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Online grocery sales by UK supermarkets declined year on year for the first time ever in the four weeks to 11 July, as lockdown easing resulted in shoppers returning to physical stores and restaurants, bars, pubs and cafes were able to trade both indoors and outside.

The reopening of most hospitality venues and non-essential shops led to a 2.6% year-on-year decline in online sales, as 81,000 fewer people chose to buy their groceries that way than in July 2020 when the UK was in full lockdown.

Overall, grocery sales were down 5.1% year on year in the three months to 11 July. The fall came despite a 24% surge in sales of alcohol, compared with pre-pandemic levels, as fans celebrating the England football team’s run to the final of the Euro 2020 tournament and tuning in to watch Wales and Scotland games spent £1.2bn on booze. Sales of crisps and snacks were also up 23% on 2019, according to the latest market share data from the analysts Kantar.

Fraser McKevitt, the head of retail at Kantar, said the return to eating out, with dining outdoors permitted from 12 April and socially distanced indoor dining and drinking returning on 17 May, had a big effect on consumer behaviour in recent months.

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“It was a huge month for British football, with major tournaments usually providing a significant boost to supermarkets. But with many fans choosing to make the most of newfound freedoms and watch the matches in pubs and bars, take-home sales of alcohol over the four weeks to mid-July were actually down by 3% compared with the previous month,” he said.

Digital grocery baskets also shrank by 8% to £80 for each shop, the lowest since February 2020, as shoppers were able to take a rest from dining at home.

Waitrose was the only grocer with physical stores to report sales growth, as the upmarket grocer benefited from consumers being more willing to shop around. Aldi and Lidl regained some market share, despite no increase in sales, as the Co-op, Asda and Morrisons lost out from the shift in behaviour.

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