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March 29, 2017updated 27 Jan 2022 2:32pm

Price inflation is driving the UK online grocery market

By GlobalData Retail

The e-commerce grocery market is climbing thanks mostly to price inflation.

Spending was up in February, according to the latest GlobalData research, driven by Valentine’s Day related purchases and people’s desire to save money through bulk buying and promotions.

The number of consumers opting to stay in rather than venture out to the supermarket jumped by 6.3 percentage points to 15.9 percent in February as 20.8 percent spent more online in February than in an average month.

Average online spend increases have also been driven by inflation, with supplier price rises, caused by the devaluation of the pound and poor crop yields, being partly passed on to the shopper.

Ocado continues to move up the rankings for online spend as significant technological investment in its supply chain allowed the retailer to service 252,000 customers per week in its first quarter.

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