IRI SalesOut Weekly News Update: 9th October 2020

Tesco has unveiled a 28.7% surge in half-year profits amid an online shopping boom as customers bought more food during the pandemic. Adapting to what it described as “major shifts in customer buying habits”, Tesco saw UK food sales rise by 9.2% and online delivery capacity more than doubled during the period to reach 1.5 million slots a week.

According to the Sunday Times, Waitrose has reportedly stolen some market share from Ocado during the early days of the latter’s partnership with Marks & Spencer. Waitrose’s standalone online grocery service reportedly increased by 20% or 190,000 orders per week. Meanwhile, Ocado saw average weekly orders decline by -5% or 18,000 since the transition.

Booker is about to trial its first symbol format using the Tesco Jack’s value brand in Blantyre, Glasgow. The surprise move by Booker comes following a period when it has been rapidly expanding distribution of the Jack’s own-label value food range to a growing number of independent retailers.

Waitrose has joined supermarket rivals Asda, M&S, Morrisons, Sainsbury’s and Tesco with its own round of price reductions of 100 branded products. Its Priced to the Pound promotion rounds the prices of branded items down to the nearest pound, and brings savings of up to 50% for shoppers.

Cosmetics giant Coty has announced the next stage of its expansion plan for the Kylie Jenner-backed skincare with DTC websites for Kylie Skin launched in the UK, France, Germany and Australia. The company stated that this will mean consumers can shop in local languages and currencies, and benefit from faster delivery of products.

In partnership with the Royal National Institute of Blind People, Kellogg’s has launched a trial of Coco Pops boxes that feature a technology called NaviLens designed to detect and playback labelling and allergen information to people with sight loss. The trial marks the first time NaviLens has been used on food packaging, as well as the first time it has been introduced in the UK.

KETTLE Chips has launched a ‘Tastes of Britain’ sub-range with three flavours that are said to reflect quintessential British meals and pastimes. The range includes ‘Seaside Salt & Malt Vinegar’, ‘Sunday Lunch Roast Chicken & Thyme’ and ‘Gardeners’ Classic Rosemary & Sea Salt’. It will be available exclusively at Tesco stores nationwide this month.

UK snack start-up, Small Giants, is rolling out a range of bite-sized, high protein, savoury crackers made with cricket flour, in an effort to promote insects as a sustainable source of protein. The crackers have recently won stars at the Great Taste Awards 2020, reportedly marking the first product made with insects to win the award.

The UK economy grew 2.1% from July, less than the 4.6% expected in August, despite a boost from the hospitality sector according to the ONS. The figures added to mounting fears over the economy, signalling that the bounceback is losing steam and that a full recovery — key for the survival of many jobs and businesses — remains a distant prospect.

Recent analysis by the Advertising Standards Authority found that during the first seven weeks of the UK’s lockdown, exposure to TV ads rose by 15.6%, as television viewing levels increased by more than a fifth. The increase equates to an average of 340 additional impacts per person, per week.

In a press release, Business Secretary Alok Sharma announced that firms would need to “take action now” to prepare for the UK’s “new start” on January 1 2021. “With just 81 days until the end of the transition period, businesses must act now to ensure they are ready for the UK’s new start come January." Changes include the way businesses import and export goods, the process for hiring people from the EU, and the way businesses provide services in EU markets.

Footfall in UK retail dropped by 28.2% in the five weeks between 30 August and 3 October 2020, an improvement on the 30.8% drop seen in August. Year-on-year footfall declined by 34.6% in high streets, 31.5% in shopping centres and 10.8% in retail parks.