The online share of the grocery market in the UK experienced a decline in June as soaring temperatures enticed shoppers to visit physical stores for beverages and refreshments, according to
industry data released on Tuesday.
Market researcher NIQ reported that online sales accounted for 10.4% of total fast-moving consumer goods (FMCG) sales in the UK during the four weeks leading up to June 17, compared to 10.9% in the previous month's data.
Before the COVID-19 pandemic, online sales represented approximately 7% of the overall grocery market in Britain. During the height of the pandemic, online sales reached a peak of around 15%, but they have since subsided as shoppers have increasingly returned to physical stores.
NIQ revealed that online sales experienced a year-on-year growth of 4.1% over the four-week period, whereas in-store sales surged by 13.4%, equivalent to an additional £1.1 billion ($1.4 billion) in revenue, accompanied by 34 million more visits to physical stores.
Mike Watkins, NIQ's UK head of retailer and business insight, explained, "These visits would have included smaller baskets, drinks, snacks, and refreshments, as shoppers were out and about enjoying the sun. It's no surprise that online grocery sales have taken a bit of a hit as there was less of a need to order in a big grocery shop."
During this period, sales of sports and energy drinks saw a significant increase of 31%, mineral water sales rose by 25%, suncare products experienced a surge of 74%, and ice cream sales grew by 47%.
Overall, total grocery sales saw a notable rise of 12.4% over the four-week period, with sales during the week ending June 17 reaching £2.9 billion, marking the second strongest week of the year, following Easter.
In line with the findings from rival market researcher Kantar last week, NIQ noted that German-owned discount retailers Aldi and Lidl continued to be the fastest-growing grocery chains, with sales growth rates of 22.2% and 18.7% respectively over the 12-week period leading up to June 17.
Marks & Spencer also saw a notable increase in sales, rising by 15.4%, securing its position as the fastest-growing retailer after the discounters.
Additionally, data co-produced by NIQ and the British Retail Consortium revealed that food prices experienced a slightly slower rate of increase for the second consecutive month in June. However, with a 14.6% rise, the continued increase still poses a significant burden on many households. Photo by P L Chadwick, Wikimedia commons.