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

Patrick Mitchell-Fox
Senior Retail Analyst
@RetailAnalysis

Date : 06 May 2020

In this regularly updated article, we summarise the latest responses to the Coronavirus (COVID-19) pandemic in the UK:

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%

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

 

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