Bread undertrades online, but research for The Grocer reveals web sales are fast catching up with bricks & mortar. 

Tesco’s online bread sales are the fastest growing, having surged 21.1% in the past year [Kantar Worldpanel 52 w/e 19 July 2015]. Sainsbury’s, Asda and Waitrose have also seen growth in online bread sales (see below).

Bread now makes up a greater proportion of Waitrose’s total online sales than it does of its total sales through its bricks & mortar estate. 

 TRADINGVALUE
retailers grocery category index y-o-y%
Total independents & symbols 1.2 1.9 158.3 -5.5
The Co-operative Group 5.1 7.8 152.9 -3.6
Aldi 4.4 5.1 115.9 17.7
Total Morrisons 10.4 11.2 107.7 -2
Total Iceland 2.1 2.2 104.8 -16.4
Total Tesco 25.7 26.3 102.3 -0.9
Total Asda 14.3 14.4 100.7 -3.4
Lidl 3.3 3.3 100.0 15.4
Waitrose internet 0.2 0.2 100.0 1.9
Total Sainsbury’s 14.6 14 95.9 -0.7
Total Waitrose 4.8 4.4 91.7 -0.5
Asda internet 1.1 1 90.9 8.1
Tesco internet 3.2 2.8 87.5 21.1
Sainsbury’s internet 1 0.8 80.0 6.1
Total bargain stores 2 0.5 25.0 3.4

“In terms of retailers, the bakery market tends to undertrade online, but online retailers grow faster than their main estate equivalents,” says Kantar analyst Charlotte Elver. 

Elver adds that the discounters have stolen a bigger slice of the market, with sales in Aldi and Lidl up 17.7% and 15.4%, respectively [Kantar 52 w/e 19 July 2015].

 “Tesco internet, Aldi and Lidl are the fastest-growing outlets in the marke,” she says. “These retailers have succeeded in bringing new shoppers into their stores within bakery, and frequency also makes a positive contribution to their overall performance.”

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