Report Summary

Period covered: 03 April – 30 April 2022

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Food & Grocery Sales

Food & Grocery sales rose 00% YoY in April, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted). Against March 2019’s pre-pandemic levels, Food sales were up by 00%.

Easter is the second most important trading period of the year for retailers, as people spend in preparation for social events. April’s grocery sales figures include Easter, boosting them in comparison to last year when Easter fell in March’s period.

High inflation is helping to lift retail sales in value terms, while volumes are in decline as cost of living pressures intensify and consumers adopt more savvy shopping behaviours

Online performance

Online Food sales have been in decline since October 2021, with sales down by 00% in April compared to the previous year when sales rose 14.9% YoY.

Average weekly spending for Online Food was £00 in April, compared to £00 per week a year earlier.

The proportion of online sales fell to the lowest level since the pandemic began in April, accounting for 00% of total Food sales, compared to an average of 00% over 2021.

Discounters gaining market share

Consumers are turning to discounters to reduce their staple costs. Aldi and Lidl’s market share has grown markedly in recent months, reaching 00% and 00% respectively in May, up from 8.0% and 6.2% in October 2021, when inflation began to rise significantly.

Retail Economics estimates that Aldi has seen an acceleration of market share by 20 months, and Lidl’s by 15 months, from the cost-of-living crisis.

As shoppers increasingly switch to discounters, Swedish online budget food retailer Motatos announced plans to launch in the UK in June. 

Sector outlook

Retail Economics forecasts Food & Grocery sales to moderate over 2022, dipping by 00% YoY, with total annual sales projected to register £00bn.

Consumer spending will rebalance in favour of restaurants and hospitality, reflecting less working-from-home and strong pent-up demand for socialising.

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Cost of living crisis accelerates discounters’ market share