Retail Week looks at the latest Kantar grocery market share data for July and what it means for the sector, in a period where alcohol and crisps came home, even if football didn’t in the end.
Headline figures
- Supermarket sales benefited from the men’s Euros, as football fans drove up purchases of beers, crisps and snacks on match days
- The fastest rise in monthly footfall this year comes as grocery price inflation falls again to 1.6% – the lowest figure since September 2021
- Unseasonably wet weather boosts sales of artificial tanning products and cold and flu treatments but dampens demand for sun cream
- Changing diets and a taste for premium coffee have Britons’ baskets looking very different today from 2010 when Labour was last in power
Tears and beers
While the England men’s football team ended up falling at the final hurdle in the Euros final on Sunday, the team’s long run in the tournament certainly helped grocers kick a few goals in the last month.
Take-home grocery sales for the four weeks to July 7 rose 2.2%, which correlates to the quarter-final round in the tournament.
Kantar head of retail and consumer insight Fraser McKevitt said that sales of alcohol and crisps and snacks were hugely boosted by the Euros, as shoppers stocked up to watch the games.
“England’s hopes might have been dashed on Sunday, but there was still some cause for celebration in the grocery industry. Football fans drove beer sales up by an average of 13% on the days that the England men’s team played compared with the same day during the previous week.
“Sales of crisps and snacks also got a boost, up by 5% compared with the month before. With many matches played on school nights, though, some Britons chose moderation. Spending on no- and low-alcohol beer soared by 38% on those matchdays.”
With the Paris Olympics still to come, grocers will be hoping this run will continue into late July and August.
Inflation down
In more good news for grocers, and retail more generally, food price inflation fell to its lowest figure since September 2021 during the period.
Inflation hit 1.6% in July, which coincided with the fastest rise in monthly footfall seen in 2024 so far. UK consumers made 2% more supermarket trips compared with the same period in 2023.
As money pressures continued to ease on consumers, sales of branded products jumped 3.6%, outpacing own-label items by 2.7%.
Ahead of the King’s speech on Wednesday, McKevitt said: “The retail landscape looks very different from 2010 when the last Labour government was in power – and so do our shopping trolleys. As diets have evolved, sales of popcorn, peanut butter and chilled vegetarian products, such as sausages and grills, have more than trebled. We’re also more likely to have premium ground and bean coffee in our cups now.”
Summer, what summer?
Unseasonably cold and wet weather has persisted into July. While this has put a dampener on the sale of summer staples, grocers have enjoyed a continued uptick in sales of products usually associated with the colder months.
McKevitt said: “We’re still waiting for the great British summer to break through the clouds, and we’re seeing the effects of that in our shopping baskets. Over the past three months, sales of cold and flu treatments jumped by 35%, while sun cream dipped by 10% on last year, when we were enjoying the warmest June on record.
“Some shoppers aren’t letting the disappointing weather dull their glow, however, pushing up sales of artificial tan by 16%.”
Ocado again
Ocado was the fastest-growing grocer for the fifth month straight, proving that as pressure on personal finances continue to ease, consumers are returning to online grocery shopping. The pureplay grocer’s sales jumped 10.7% over the 12 weeks to July 7.
Despite easing inflation, at least one of the discounters continued to perform strongly. Lidl sales jumped 7.8%, with its market share growing to 8.1%. Aldi by comparison managed just 0.3% growth in sales, with its market share at 10%.
Tesco also achieved its biggest share gain since November 2021, taking 27.7% of the market. For the rest of the big four, Sainsbury’s sales jumped 4.7%, Morrisons leapt 1%, while Asda’s slump continued with sales down 5.3%.
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