UK grocery sales declined in recent weeks from a year before, numbers from Kantar showed on Tuesday, with the pace of growth compared to two years earlier also slowing.

Some pandemic trends have begun to normalise, though some patterns, such as chunkier sales contributions from online offerings, have lingered.

Grocery price inflation, meanwhile, hit a near 10-year high in March.

In the 12 weeks to March 20, the value of UK grocery sales fell 6.3% yearly to £29.17 billion from £31.12 billion. On a two-year basis, they grew 0.7%.

Two-year growth slowed markedly from 8.4% in the 12 weeks to February 20.

It was in March 2020 that UK grocers received a considerable boost in demand due to stockpiling, as consumers feared shortages following the emergence of Covid-19.

Kantar analyst Fraser McKevitt commented: ‘It’s no surprise that sales are down over the latest period, as consumers are now more confident eating out of the home again. As well as enjoying meals out with friends and families, people will have also been grabbing food and drink on the go from supermarkets while travelling or at work. Those sales aren’t included in these take-home figures, but they will be adding to the grocers’ overall performance.

‘What we’re really starting to see is the switch from the pandemic being the dominant factor driving our shopping behaviour towards the growing impact of inflation, as the cost of living becomes the bigger issue on consumers’ minds.’

Grocery price inflation for the 12-week period quickened to 4.2% from 3.5% in 12 weeks to February 20.

In March alone, Kantar noted that price inflation hit 5.2%, the highest rate since April 2012.

Turning to individual grocers, Ocado PLC saw a 6.7% sales fall to £539 million during the 12-week period. Its market share edged down 1.8% from 1.9% a year prior. On a two-year basis, Ocado sales were up by a quarter, however.

McKevitt commented: ‘The real story of Covid-19 has been the acceleration of online shopping, and retailers have built their digital capacity to match a seismic change in demand.’

The Kantar analyst noted that online accounted for 13% of sales in March, compared to just 8% three years earlier.

Tesco PLC’s sales fell 5.2% yearly to £7.98 billion during the 12-week survey. Sales were up 2.8% from two years prior, however.

Tesco’s market share increased yearly to 27.4% from 27.1%.

J Sainsbury PLC’s share of the UK grocery market declined to 15.1% from 15.3%. Its sales fell 7.5% annually and were down 0.7% on a two-year basis at £4.39 billion.

Elsewhere, German discount chain Lidl equalled its market share high of 6.4%, up from 5.8% a year prior. The market shares of compatriot Aldi rose to 8.6% from 7.8%.

Asda and Wm Morrison Supermarkets, which alongside Tesco and Sainsbury’s form part of the UK grocery sector’s ’Big Four’, saw their share of the market decline.

Asda’s market share fell to 14.5% from 15.1%, while Morrisons’ share dropped below 10%, hitting 9.5% from 10.1%.

In London on Tuesday morning, Tesco shares were 0.1% higher at 280.45 pence. Ocado was up 3.2% at 1,124.00p and Sainsbury’s was up 0.3% at 261.70p.

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