Ocado sales dip as shoppers return to pre-Covid habits | okado

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Ocado reported its first-ever drop in sales as the grocery shopping boom triggered by the pandemic dissipated.

Online supermarket sales fell 0.7% in the 12 weeks to August 8, according to the latest snapshot from grocery market analysts Kantar, which it called “the first drop ever.”

Shoppers have been returning to stores in much greater numbers as social distancing restrictions ease, said Fraser McFate, head of retail and consumer at Kantar, which has had an impact on online food sales.

“Those who have come to love the convenience of an online store stick to it,” he said. “But the non-converters are starting to fall back, preferring to go back to the store instead.”

About a fifth of the population in Great Britain bought groceries online in the last four weeks, the lowest level since October, while the share of online grocery sales was 13%, down from a peak of 15.4% in February 2020.

McKevitt said that Ocado’s rapid growth in 2020 means that it is not surprising that “we are now seeing a slight decline.”

Kantar has been tracking Ocado’s performance since 2009.

The value of Ocado’s stock, which was close to £29 in January, fell to around £18 after another fire at one of its warehouses.

Despite the setback, McKefit said, the company has a positive outlook, pointing to more than 40% growth since 2019. Ocado controls about 1.8% of grocery sales in England, Scotland and Wales.

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Overall grocery sales fell 4% over the three months as Britons, after a major change in shopping habits due to the lockdown, began returning to dining in restaurants and pubs.

However, Covid-19 continues to affect spending with grocery sales up 10% in the last 12 weeks compared to 2019.

With recent warnings that consumers may face higher shopping bills, Kantar data shows grocery prices fell 0.8% over the 12 weeks. However, the past four weeks paint a different picture with inflation growing 0.4% during this period.

Cat food, delicious snacks, cakes and pastries were among the product categories where prices rose the fastest.

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