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Symbols and indies see sales decline continue as online shopping thrives

The symbols and independents sector has seen a consecutive decline in sales for half a year

Symbols and independent grocers are entering their half-year decline in sales, according to new data from Kantar, as the sector lost 1.2% share year on year.

The sixth month of a consecutive sales fall for the sector is possibly due to a shift to online shopping, poor weather and a move towards budget spending, Kantar reported.

The figures have been released ahead of the Autumn Budget, showing that the impact of weather has been felt for particular grocers as shoppers move online, taking away potential sales for convenience stores.

In a sign that September’s record monthly rainfall is impacting the way people shop, online grocer Ocado gained the largest share at 10%, having been the fastest growing grocer for the eighth month running.

Susan Connolly, of Connolly Spar Pewsey, Tidworth, told Better Retailing that sales for independents and symbols are “horrendous at the moment”, with a lot of business moving online through TikTok shop.

“The whole country suffering. I think that TikTok shop is not doing us any favors, and I don’t think [sales are] going to the multiples. On TikTok shop, you can get fairy washing up liquid, toilet roll or boxes of sweets. People are now also going to Costco to buy in bigger bulk – people are just shopping differently. A lot of independent stores aren’t looking at what’s going on online, and online delivery.”

The overall online market expanded by 3.5% over the 12 weeks, now worth £3.7bn, with 22.1% of households shopping online. 

Connolly added that despite the figures being “rubbish” throughout 2024, numbers are “still massively up since Covid”.

“We’re all beating ourselves up over these figures, but actually we’re still miles ahead of what we were before Covid.”

Sales downturn continues for independent stores

The results also indicated that shoppers are still keen to save money through promo items, which saw a rise across all grocers, rising by 7.4% in September, while full-priced items rose by 0.3%.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “In the fiercely competitive retail sector, the battle for value is on. Supermarkets are doing what they can to keep costs down for consumers and thanks to their efforts the prices in some categories are falling. 

“The average price paid for toilet and kitchen roll is 6% lower year-on-year, for example, while dog and cat food are 4% and 3% cheaper respectively. The unusually wet weather this September had the nation rushing for those classic warming staples. Hot chocolate sales surged by 28%, soup by 10% and home baking by 7% as people looked to stave off the autumn blues. Sugar confectionery has also seen a 9% lift, and spending is expected to ramp up further this month as trick or treating approaches – confectionery sales were 16% higher in the second half of October last year.” 

Kantar also revealed that grocery price inflation increased by 2% in the four weeks to 29 September, up from 1.7% from last month. Prices are rising fastest in markets such as chilled soft drinks, chocolate confectionery and skin care and are falling fastest in household paper products, dog food and cat food.

While take-home sales across all grocers grew by 2% across the same period, Asda, Co-op, and other multiples similarly saw a drop too, with Asda faring worst at a 5.1% loss.

Read more Kantar news

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