Ocado bags sales jump amid decline in supermarket sector
Ocado has posted a double-digit rise in sales over the last quarter as it defied an overall decline in the supermarket sector.
The online retailer boosted its sales by 11.9 per cent in the 12 weeks to 14 July, stealing a larger chunk of the competitive grocery market.
Read more: Sainsbury’s sales slip in ‘tough’ supermarket environment
It came as the overall sector suffered a 0.5 per cent dip in sales compared to last year – the first drop since June 2016, according to the latest figures from Kantar.
However, the tough period for grocers was not unexpected, due to record sales during last summer’s heatwave and football World Cup.
“The main factor behind the sales drop-off is shoppers heading out to stores less often,” said Fraser McKevitt, head of retail and consumer insight at Kantar.
“Last year people shopped more frequently and closer to home as they topped up the cupboards while enjoying the sunshine and the men’s football World Cup. This year households are making one fewer trip, which may not sound like much but is enough to tip the market into decline.”
| Consumer Spend | 12 weeks to 15 July 2018 (£m) | Share | 12 weeks to 14 July 2019 (£m) | Share | Change |
| Tesco | 7,491 | 27.6% | 7,343 | 27.2% | -2.0% |
| Sainsbury’s | 4,241 | 15.6% | 4,145 | 15.3% | -2.3% |
| Asda | 4,106 | 15.1% | 4,025 | 14.9% | -2.0% |
| Morrisons | 2,846 | 10.5% | 2,772 | 10.3% | -2.6% |
| Aldi | 2,042 | 7.5% | 2,178 | 8.1% | 6.7% |
| Co-op | 1,733 | 6.4% | 1,736 | 6.4% | 0.2% |
| Lidl | 1,477 | 5.4% | 1,581 | 5.8% | 7.0% |
| Waitrose | 1,366 | 5.0% | 1,341 | 5.0% | -1.9% |
| Iceland | 582 | 2.1% | 574 | 2.1% | -1.5% |
| Ocado | 327 | 1.2% | 366 | 1.4% | 11.9% |
The tough comparison compared to last year was evident in key summer markets, such as alcohol and ice cream.
Brits spent £75m less on alcohol this year compared to last, with beer sales down 11 per cent and cider down 13 per cent.
But the cooler weather prompted a rise in confectionery sales, with chocolate up 15 per cent.
Sales at the big four supermarkets dropped at least two per cent, marking a continuation of an ongoing trend over recent quarters, while discount German challengers Aldi and Lidl continued to boost their market share.
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Aldi reached a new record, with 8.1 per cent share of the market, and rival Lidl was the fastest growing brick and mortar supermarket, with sales up seven per cent.
“Although sales at the big four grocers fell collectively by 2.1 per cent, they continue to account for two-thirds of all supermarket sales and there are bright spots for all the retailers,” said McKevitt.
Main image credit: Getty