Coronavirus (COVID-19): UK market update w/c 4 May

Nick Gladding
Senior Retail Analyst

Date : 11 May 2020

Market update:

  • Grocery sales growth slows to 5.5% in April: New data from Kantar reveals a slowdown in grocery market growth from 20.6% in March to 5.5% over the four weeks to April 19th as consumers settle into life under lockdown


Multiples update:


  • Tesco acts to meet soaring potato demand: Tesco has agreed to take excess stock from potato supplier Branston that was
    previously destined for foodservice outlets. The potatoes may carry blemishes but will be labelled to assure shopper of product quality Demand for potatoes across Tesco has risen by 30% since March
  • Morrisons sells flour direct from its bakeries: To meet the soaring demand from shoppers wanting to bake their own bread, Morrisons
    has begun re-packing and selling the flour used by its in-store bakeries direct to customers


Online update:

  • Ocado sales boosted by Coronavirus demand: Ocado Retail has reported a sales increase of 40.4% for Q2 to date. See separate
    story here

  • Asda launches 'priority pass' scheme for care home workers: 3,500 small care home that are already Asda customers will be able both to book online delivery slots as soon as they become available and  the ability to secure a recurring slot. Over recent weeks Asda has expanded online delivery service capacity from 450,000 to 700,000 slots per week. Asda is also donating 250,000 medical grade face masks to care homes

  • M&S extends Deliveroo partnership: New locations beyond BP stores, extend the service to more customers. See separate story here

  • Morrisons creates VE Day tea box: Morrisons has added a celebratory afternoon tea box to its range of meal boxes. Priced at £15
    and available for delivery this Friday, the special box will include scones, cakes and champagne truffles from the Morrisons Best range as well
    as Rodda’s clotted cream, jam and ingredients to make sandwiches and tea for two.  A BBQ box will also be available for the bank holiday weekend


Convenience update:

  • The Association of Convenience Stores has reported that local stores are now making 600,000 home deliveries a-week: it
    estimates that while one in ten local convenience stores were making deliveries before the outbreak, that number has now risen substantially to two thirds

  • Third party convenience ordering app, Snappy Shopper has reported that the number of stores selling through its platform has
    risen by a factor of five:
    the number of shoppers using the app has also risen sharply, by 360%, and the value of sales has leapt by by 520%

  • AF Blakemore launches in-house ordering website to rapidly scale up home delivery through its network of SPAR convenience
    stores. See separate story here

  • Independent convenience stores update: The growth of average sales in independent c-stores continued to accelerate from 14.4% in
    March to 27% in April despite depressed footfall, according to new data from The Retail Data Partnership (TRDP). Sales of fresh produce more than doubled in April (+104%) reaching £1,200 per store on average


Food-to-go update:

  • Pret A Manger seeking £87m in urgent bank funding: This additional finance is to support the business during the ongoing
    shutdown of most of its stores and help it initiate a test and learn stage to develop new systems and products for after the outbreak

  • launched to allow pubs to trade as local shops: The new not-for-profit platform from Starstock enables pubs to take and
    process orders online and provides communities with a new way to access groceries. Already used by 500 pubs around the country, launch partners including Brakes, Budweiser Brewing Group, Coca-Cola European Partners as well as pub companies Admiral Taverns and Greene King. The initiative has now been strengthened by Costcutter, All About Food and Heineken joining the platform 

Please note that this Covid-19 weekly summary page is no longer being updated. For the latest UK news, including all Covid-19 related articles, please visit our UK country news page


For more on Coronavirus (COVID-19)

  • For last week's UK market update, click here
  • Latest news and reports, click here
  • How IGD is working with the food and consumer goods industry during coronavirus - visit our dedicated webpage