UK grocery sales have fallen year-on-year in recent weeks and notably declined on a two-year basis for the first time since the pandemic began, figures from Kantar showed on Tuesday.

This was despite UK grocery price inflation reaching a more than 10-year high.

In the 12 weeks to April 17, UK grocery sales fell by 5.9% year-on-year to £29.73 billion from £31.60 billion. On a two-year basis, sales fell 0.6%.

It was the first fall on a two-year basis since the onset of the pandemic. However, sales are now lapping strong comparatives from 2020, when consumers turned to stockpiling in fears of shortages as the Covid-19 spread.

Grocery price inflation in the 12 weeks was 4.8%. In April alone, it was 5.9%, the chunkiest rate since December 2011.

‘The average household will now be exposed to a potential price increase of £271 per year. A lot of this is going on non-discretionary, everyday essentials which will prove difficult to cut back on as budgets are squeezed. We’re seeing a clear flight to value as shoppers watch their pennies,’ Kantar analyst Fraser McKevitt commented.

Among listed grocers, only Tesco PLC gained market share over the 12-week period.

Tesco sales fell 4.8% annually to £8.11 billion, though its grip on the UK grocery sector improved to 27.3% from 27.0%.

J Sainsbury PLC sales fell 7.7% to £4.46 billion, while its share of the market slipped to 15.0% from 15.3%.

Online-only grocer Ocado Group PLC sales fell 11% to £521 million and its market share was unchanged at 1.8%.

Online sales fell 15% yearly over the period.

McKevitt added: ‘While online shopping is definitely here to stay, it’s less of a necessity now. Shopper confidence about heading out and about and getting back to store has gone up, and half a million fewer households bought over the internet compared with last year.’

Elsewhere, German discount chains Aldi and Lidl were the fastest growing grocers during the period. Aldi sales rose 4.2%, while Lidl’s advanced 4.0%.

Aldi’s market share rose to 8.8% from 8.0% a year prior, while Lidl’s improved to 6.6% from 6.0%.

In London on Tuesday morning, Tesco shares were 0.5% higher at 270.00 pence. Sainsbury’s was down 1.8% at 239.30p. Ocado fell 3.0% to 1,004.50p.

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