N360 InsightsReview

May 2021

Nectar360May 2021

©Nectar360 2021

©Nectar360 2021

Easing of Covid restrictions has seen some signs of behaviour returning to pre-pandemic norms

Nectar360 May 2021

Resurgence of frequent, small shops means basket size is now only up 4% YoY, having been 50%+ in 1st lockdown

Average basket size almost back to pre-Covid

Despite easing of restrictions / return to physical stores,

400k+ additional customers shopped for groceries online in

last 12 weeks YoY

Online shopping continues to grow

Economic outlook for both personal and national finances rebounded sharply, 49% think UK’s situation will improve in 6

months

Consumer optimism recovering well

Summer holiday plans are looking more certain

A quarter are still waiting to see how covid plays out, but

most people are now planning to spend the summer in the

UK

©Nectar360 2021

With the third national lockdown easing, there are signs that some shopping behaviour in Sainsbury’s continuing to slowly return to ‘normal’ whilst some behaviour is set to stay

Nectar360 May 2021

2

0.00

1,00 0,000.00

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£0 .0 0

£5 0,000,00 0.00

£1 00,000 ,0 00.00

£1 50,000 ,0 00.00

£2 00,000 ,0 00.00

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£4 00,000 ,0 00.00

Customers Sales

©Nectar360 2021

Nectar360 May 2021

3 Total Fresh, Grocery & Value Added Food 79 weeks to 03/05/2021; Nectar Data Only

Sainsbury’s had the biggest Easter everBut penetration has not fully recovered from Covid-19

1st UK Lockdown

begins

Christmas Christmas EasterEasterEngland

2nd

lockdown

3rd UK Lockdown

begins

Lockdown measures

eased to allow more

time outside

3 tier system

introduced

©Nectar360 2021

Average basket size remains bigger than last year . . .

£ per visit

Units per visit

Spend per customer

Frequency of purchase

Customers

Nectar360 May 2021

Total Fresh and Grocery 12 weeks to 01/05/2021; Nectar Data Only4

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

£0 .0 0

£2 ,0 00,000 .0 0

£4 ,0 00,000 .0 0

£6 ,0 00,000 .0 0

£8 ,0 00,000 .0 0

£1 0,000,00 0.00

£1 2,000,00 0.00

Transactions Units Per Customer

©Nectar360 2020 5

Nectar360 May 2021 . . . But continues to steadily decline

compared to the start of the pandemic

Total Fresh & Grocery 79 weeks to 03/05/2021; Nectar Data Only

1st UK Lockdown

begins

Christmas Christmas EasterEasterEngland

2nd

lockdown

3rd UK Lockdown

begins

Lockdown measures

eased to allow more

time outside

3 tier system

introduced

©Nectar360 2021

Categories that struggled the most throughout the pandemic are returning to growth

Nectar360 May 2021

6

©Nectar360 2021

Category performance – YoYBWS, Meal Solutions and Impulse are now driving overall sales growth

Nectar360 May 2021

7

Beers Wines &

Spirits

Meal Solutions Impulse Food Produce Dairy Total Fresh &

Grocery

Meat Fish &

Poultry

Bakery and

Food Services

Frozen Food Health &

Beauty

Packaged &

Speciality

Household

Baby & Pet

Total Fresh and Grocery 12 weeks to 01/05/2021; Nectar Data Only

©Nectar360 2021

Most impacted categories:

Impulse

Meal Solutions

Beers, Wines & Spirits

£86m more spent on BWS in the last 12 weeks vs. last year, despite pubs re-opening

Champagne & Sparkling wine had the highest % growth in the category at +70%

Category performance 12 weeks YoYSharing & gifting products drive growth in several categories as shopper missions change as lockdown eases

£29m extra spent on Meal Solutions in the latest 12 weeks vs last year.

Prepared meals contributed £12m of the sales growth in the category

Nectar360 May 2021

£5.8m extra spent on Champagne in the latest quarter

600k extra units of Prosecco purchased

£50m extra has been spent within Impulse in the last 12 weeks.

Easter Confectionary drove growth at +34% YoY

£7.9m extra spent on Easter

Shell Eggs

1.4m extra units of Easter Shell

Eggs were purchased

£4m extra spent on Chilled Oriental

Meals

£2.6m extra spent on TTD

Prepared Meals

8 Total Fresh and Grocery 12 weeks to 01/05/2021; Nectar Data Only

©Nectar360 2021

The online channel continues

to drive growth as capacity

increases, indicating that

the online shift will continue

beyond the pandemic

Nectar360 May 2021

9

©Nectar360 2021

NectarCustomers

£ Per Customer

Frequencyof Purchase

Units per Visit

Convenience

Online

Supers

Channel Performance – 12 weeks YoY An additional 411k customers are shopping online; as shoppers continue to shop more frequently

Nectar360 May 2021

10 Total Fresh and Grocery 12 weeks to 01/05/2021; Nectar Data Only

£ Per Customer

£ Per Visit

NectarCustomers

Frequencyof Purchase

£ Per Visit

Units per Visit

£ Per Customer

NectarCustomers

Frequencyof Purchase

£ Per Visit

Units per Visit

£ Per Customer

Meal Solutions Beers, Wines &

Spirits

Produce Dairy Bakery & Food

Service

Meat, Fish &

Poultry

Impulse Total Fresh &

Grocery

Frozen Packaged &

Speciality

Health &

Beauty

Household,

Baby & Pet

©Nectar360 2021

Online: Category Performance – YoYMeal Solutions , Beers Wines & Spirits and Produce drive overall sales growth

Nectar360 May 2021

11 Total Fresh and Grocery 12 weeks to 01/05/2021; Nectar Data Only

©Nectar360 2021

Online: Category Performance 12 weeks YoYFresh & Grocery sales almost double over the latest 12 weeks, driven by a 50% increase in sales per customer

Most impacted categories:

Produce

Beers, Wines & Spirits

Meal Solutions

Nectar360 May 2021

Total Fresh, Grocery & Value Added Food 12 weeks YoY to 01/05/2021; Nectar Data Only12

£5m extra spent on Tomatoes in the last quarter

1.6m customers purchased Produce in the last 12 weeks and they spent an additional £66m.

Tomatoes, Cucumbers & Peppers deliver £9m growth vs last year

3.7m extra units of Tomatoes were

purchased in the latest 12 weeks

An additional £55m was spent on BWS vs last year

Still Wine drives overall growth contributing to £27m extra spend

£15m extra spent on New World

Wine in the last quarter

£8.2m extra was spent on Red

Wine New World

1.4m shoppers purchased Meal Solutions in the latest 12 weeks

Traditional & Italian Prepared Meals drove overall growth up £5.1m YoY

1.0m TTD Prepared Meals

sold in the latest 12 weeks

An additional £2.1m spent on TTD prepared

Meals YoY

©Nectar360 2021

Easter performs strongly as

shoppers celebrate the

easing of lockdown

restrictions

Nectar360 May 2021

13

Eleven Weeks

before Easter

Ten weeks

before Easter

Nine weeks

before Easter

Eight weeks

before Easter

Seven weeks

before Easter

Six weeks

before Easter

Five weeks

before Easter

Four weeks

before Easter

Three weeks

before Easter

Two weeks

before Easter

One week

before Easter

Easter Week

Easter 2020 Easter 2021

©Nectar360 2021

Nectar360 May 2021

14

989k extra customers shopped for Easter products during Easter week this yearSales accelerated in the 2 weeks before Easter and doubled vs. last year

Week after UK schools

closed

12 Weeks to 04/04/2021; Nectar Data OnlyTotal Easter: BWS, Easter Confectionery, Aisle Lamb, Easter Decoration ( Adult and Child Tableware, Egg Hunt decorations), Wigig and &Big Packs, Freefrom Confectionary and Eggs, Easter Cakes and Cards

©Nectar360 2021 15

Nectar360 May 2021 The Thursday before Easter was the most

popular day for shoppingOver 3m units of Easter confectionary were sold on this day

3 Weeks to 04/04/2021; Nectar Data OnlyNote: % of total Easter related sales

Friday

Friday

Sunday

Sunday

Thursday before Easter

Breakdown of when Easter related sales took place in 2021

©Nectar360 2021 16

Nectar360 May 2021 Shoppers were in a celebratory mood for

Easter this yearNear-tripling Freefrom Easter sales reflects changing customer diets

2 Weeks to 04/04/2021; Nectar Data Only

Freefrom

Easter

Easter

Decoration

Wigig & Big

Packs

Easter Cards Easter

Confectionery

Total Easter BWS Easter Cakes Lamb

©Nectar360 2021 17

Nectar360 May 2021 An additional 2.2m Easter Eggs were sold in

the 2 weeks before Easter this yearLicensed Eggs showed the strongest value growth but shoppers also spent an additional £2m on Premium Large Eggs

2 Weeks to 04/04/2021; Nectar Data Only

License Eggs Medium Eggs Small Eggs Total Shell Eggs Giant Eggs Luxury Eggs Premium Large

Eggs

Standard Large

Eggs

©Nectar360 2021

Relaxation of restrictions

and economic recovery have

driven a rapid improvement

in shoppers opinions of

economic outlook

18

Nectar360May 2021

Financial Situation - UKOptimism around the UK economy has risen sharply and now exceeds pessimism for the first time in 3 years

Source: Grocery tracker, base ~2000 interviews / month©Nectar360 2021 19

Nectar360 May 2021

I expect the general economic situation to get better/worse in the next 6 months

25%23%23%

20%20%22%

18%18%17%16%18%19%18%17%16%16%

18%21%

30%28%27%

13%16%

20%

24%

28%25%

20%

15%

23%21%20%

36%38%

49%43%

39%41%

47%46%45%

49%51%

54%54%

49%

45%46%49%

55%53%

50%47%

40%41%38%

67%

74%71%

64%

59%61%62%

67%

57%54%

58%

43%41%

29%

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Get Better Get Worse

Financial Situation - PersonalThis is reflected in personal impact, more now feeling their own finances will improve

Source: Grocery tracker, base ~2000 interviews / month©Nectar360 2021 20

Nectar360 May 2021

How I expect the financial position of my household to change over the next 6 months

26%27%

23%

26%26%

23%23%23%22%

24%23%23%23%

22%21%

22%

27%27%28%

30%

18%

15%16%

18%18%17%

16%15%

17%16%

15%

21%

23%

23%

30%

23%

28%

26%25%

28%28%

31%31%30%

26%27%

26%

30%30%29%

24%25%

24%

21%

35%

42%

38%

32%

30%

32%

30%

32%

28%

26%27%

24%

20%

17%

Ju

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1

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1

Get Better Get Worse

©Nectar360 2021

Government roadmap for

international travel has

resulted in more collectors

planning to travel – however

the majority plan to spend

summer 2021 in the UK

21

Nectar360May 2021

Comfort making future travel plansGovernment roadmap for international travel means more Nectar customers feel comfortable booking future holidays

Source: Nectar360 Omnibus/Travel Tracker ~ 2,000 per month. Q. Now thinking about your future holiday plans, how comfortable do you feel as of now to make your future holiday bookings?

©Nectar360 2021 22

Nectar360 May 2021

62%59%

52%

58%

64%62% 61% 62%

67% 67%

52%50%

22%25%

30%

25% 24%21% 20% 20%

17% 17%

28%30%

Somewhat uncomfortable/Not comfortable at all

Very comfortable/Somewhat comfortable

How comfortable do you feel as of now to make your future holiday bookings?

Travel plansAs the 3rd lockdown eases, more people are beginning to plan trips out of home – closing in on last summer’s levels

Source: Nectar360 Omnibus/Travel Tracker ~ 2,000 per month. Q. When do you next plan to travel for a holiday that will include at least one night stay away from home?

©Nectar360 2021 23

Nectar360 May 2021

When do you next plan to travel for a holiday that will include at least one night stay away from home?

1%3%

16% 17%15%

5%3% 2% 1% 1% 1%

5%

12%

May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21

Plan in next month

Travel plansCustomers’ summer plans are becoming more certain, with the majority intending to stay in the UK

Source: Nectar360 Omnibus/Travel Tracker ~ 2,000 per month. Q . And thinking ahead to summer 2021, what are your current holiday plans?

©Nectar360 2021 24

Nectar360 May 2021

What are your current travel plans for summer 2021?

9%12%

18%

8%

16%

8%6%

4% 4% 5%

18%

14%11% 11%

13%

30%

34%

38%

50% 51%46%

44%

39%

32%

24%

Dec-20 Jan-21 Feb-21 Mar-21 Apr-21

Comfort with travellingDrop in Covid case rates and vaccine rollout has helped improve comfort travelling on different modes of transport

Source: Nectar360 Omnibus/Travel Tracker ~ 2,000 per month. Q. And how comfortable do you feel using these modes of transport? Proportion responding very comfortable / somewhat comfortable

©Nectar360 2021 25

Nectar360 May 2021

93% 95% 93% 93% 94% 93% 91% 90% 91% 92% 93%

51% 50%47% 45%

49%45% 43% 45% 44%

48% 46%

31% 32%36% 35%

46%43%

38%34%

39%45% 46%

27% 27% 27% 25%

36% 35% 33%29%

32%38% 37%

Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21

Car Bicycle Train Plane

How comfortable do you feel using these modes of transport?

©Nectar360 2021

Issues to consider

Nectar360May 2021

©Nectar360 2021

Easing of Covid restrictions has seen some signs of behaviour returning to pre-pandemic norms

Nectar360 May 2021

Resurgence of frequent, small shops means basket size is now only up 4% YoY, having been 50%+ in 1st lockdown

Average basket size almost back to pre-Covid

Despite easing of restrictions / return to physical stores,

400k+ additional customers shopped for groceries online in

last 12 weeks YoY

Online shopping continues to grow

Economic outlook for both personal and national finances rebounded sharply, 49% think UK’s situation will improve in 6

months

Consumer optimism recovering well

Summer holiday plans are looking more certain

A quarter are still waiting to see how covid plays out, but

most people are now planning to spend the summer in the

UK

©Nectar360 2021

Why not check out the latest articles on the Nectar 360 site?

Nectar360May 2021

On March 23rd 2020, the UK went into its first national lockdown. In the year that followed, across 2 more lockdowns and a colossal vaccine roll-out, the nation’s shopping behaviour was radically shifted. Read more here.

Customers’ health goals shifted throughout a year like no other, with exercise booming through the summer of 2020 and dropping off in the winter. Other health goals also changed, with consumers focusing on both physical and mental health. Read more here.

Thank younectar360.co.uk

©Nectar360 2021