UK Grocers Keep Growing as Heatwave Drives Summer Sales

The convenience channel posted its strongest performance in more than a year, with sales up 3.6% as shoppers hit local stores for immediate refreshments and snacks. Online grocery also outpaced the market, with e-commerce sales reaching £2.1bn, up 10% in value and 5% in units. Food delivery platforms kept gaining share, helped by demand for "picky bits" such as fresh dips, where sales rose 16%, and "dinner for tonight" options as more people ate outdoors. Health-conscious buying showed up too: products with 1 to 100 calories per 100g grew 6.3% in value, while those above 300 calories declined. Items labelled "high source of protein" rose 4.4%.

Among retailers, Ocado and M&S were the standout performers over the 12 weeks, growing 17.3% and 12.9% respectively and both gaining share. Lidl rose 8.2%, Co-op gained 7.0% on more visits, Sainsbury's was up 3.6%, Tesco 3.2% and Morrisons 3.1%. Asda trailed, with sales down 1.5%.

Consumer confidence remains fragile, with the GfK index at -17, though shoppers showed more willingness to treat themselves to affordable indulgences. Mike Watkins, head of retailer and business insight at NielsenIQ, said growth had slowed from the World Cup peaks and the holiday season had prompted shoppers to delay some non-essential spending. Lower inflation than a year ago was also holding back topline growth, he said, but shoppers were still buying more as heatwaves continued.

Watkins said shoppers were more willing to buy affordable treats in food and drink, particularly when the weather created an immediate occasion. Promotional activity will stay important over the next six weeks, he said, with the possibility of a short-term return of money-off vouchers as baskets reset when children return to school and the weather turns more seasonal.