Grocery Sector Likely To Benefit From Latest Covid Concerns

Namnews, 8th December 2021

Rising Covid-19 infections and news of the Omicron variant appear to be halting the recent decline in grocery sales.

Data released yesterday by Kantar showed that sales at all the major grocery retailers in the UK fell over the 12 weeks to 28 November against tough comparatives with last year when Covid restrictions were reintroduced. The return to more normal trading conditions and consumers eating out more in recent months has also led to a weakening in demand in supermarkets from last year’s bumper figures.

However, a report by analysts at investment bank Jefferies suggests people are becoming “hesitant” again about visiting pubs and restaurants, and are stocking up food at home instead.

The analysts pointed to data for the four weeks to 28 November, which showed the first acceleration in growth on 2019 figures after a number of weeks of sequential slowing growth. The big four and discounters all benefitted, whilst the recent decline in online grocery sales also reversed.

Jefferies noted that the trend could continue over the festive period if the Covid situation continues to worsen.