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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Ocado quids in as lockdown switches food buying online

Convenience stores also racked up big sales rises with the Co-op up 34%

Online grocery business Ocado PLC (LON:OCDO) has seen its share of the UK market soar in the past four weeks, according to the latest data from research group Kantar.

Total grocery sales jumped by 18.9% in the period to June 14, as people under lockdown either ordered online or went to their local convenience store.

Online sales rose by 91% year-on-year as almost 20% of UK households bought something, Kantar said.

Ocado’s sales rose by 42% with the surge boosting its share of the market to 1.7%, up from 32.5% in the previous month's update.

Convenience stores also racked up big sales rises with the Co-op’s chain of local stores seeing a 34.5% improvement.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The cumulative impact of lockdown has helped Ocado to achieve its highest ever market share - hitting 1.7% over the past 12 weeks thanks to an industry-high sales growth of 42.2%."

The rush for convenience also boosted the local arms of the major grocery chains, such as Tesco Express said Kantar.

Tesco (LON:TSCO) was the best performer of the big grocers with sales growth of 12.1%, but all of the big four of Sainsbury’s (LON:SBRY), Asda and Morrisons (LON:MRW) did well as the coronavirus lockdown sparked a rush of food buying.

Iceland, where founder Malcolm Walker is now back in charge of the business again, was another notable performer with sales rising by 31% over the past twelve weeks.

Grocery inflation picked up even further, to 4.0% for the 12-week period June 14, from 3.1% a month earlier and 1.9% in the April update.

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