Inflation outpacing grocery growth, online stabilizing
The Swedish grocery market continues to lose volume as inflation outpaces the growth of the grocery market. However, the development of food inflation seems to have turned to decline as the food inflation for March dropped to 19,65% from 20,95% in February.
The store-based grocery business grew by 9,8%, whereas the online channel saw revenues decline by -7,7%. The home delivery submarket of the online channel seems to be close to ending the decline. Home delivery revenues were reduced by -1,3%, the smallest Year-on-Year drop since 10/2021.
Online currently represents 4,7% of all groceries sold in Sweden. That equals a 3,6 billion SEK market in Q1/2023 (13,3 billion SEK for the Last Twelve Months).
Home deliveries represent 57,4% of all online orders, up from the lows of 47,3% two years ago.
The following month of April will be the first non-Covid lockdown month to have Year-on-Year comparisons. It will be interesting to see whether online will continue to grow from those levels on the first ”new normal” comparison month.
