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UK Food & Grocery Sector Report summary

February 2022

Period covered: Period covered: 02 January – 29 January 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 fell 00% YoY in January, against strong 00% lockdown-induced growth a year earlier. Against pre-pandemic levels, Food sales rose by 00%.

As the pandemic recedes, consumers are becoming more confident to socialise outside of the home, diverting spending away from supermarkets to hospitality venues.

Convenience channels and food categories outperformed in January, as office working returns and consumers revert to shopping little and often, further indicating lockdown-style habits are easing.

Online performance

Average weekly online food sales fell to their lowest level since April 2020, totalling £00 million in January.

However, the grocery sector has experienced one of the largest shifts towards digital since the onset of the pandemic compared with other retail sectors.

The proportion of online sales remains considerably ahead of pre-pandemic levels, at 00% of total Food sales in January, almost double the share pre-Covid.

Sector outlook

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

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

The sector also faces tough annual comparisons, especially in Q1 against a lockdown period last year when grocery sales were robust.

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Online Food & Grocery penetration

Source: ONS, Retail Economics

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  • Grocery Market Share - top 10 UK Food retailers
  • Food & Grocery Market Size estimates (£m)
  • Sales Growth by category
  • Total Food Spending by category (£m)
  • Online Grocery Sales (y-o-y)
  • Forecasts for 2021 - 2025
  • Footfall by channel and region
  • Regional Weather data and more…