Two major online grocery delivery operators have reported sustained sales growth despite an easing of coronavirus restrictions that has increased competition for consumer sales.

The COVID-19 pandemic forced the supermarket sector to the front line – forcing it to invest heavily to feed the nation as demand for deliveries surged amid orders for everyone to stay at home.

Tuesday’s trading updates from Sainsbury’s and Ocado suggested there has been no let-up in the trend and customers remain firmly focused on meals at home despite the reopening of pubs, cafes and restaurants.

Sainsbury’s said 18% of all food sales were now made via its website compared with 8% pre-pandemic.

Total like-for-like sales, excluding fuel, rose 1.6% in the 16 weeks to 26 June – its first quarter.

Analysts had expected a fall of 1.7% given a tough comparison with the same period a year ago when shelves were stripped bare by panic buyers as the first UK lockdown took hold.

The chain – second only to Tesco in terms of market share – said sales of grocery, general merchandise and clothing were all higher than it had expected.

Sales at Argos took a particular hit however – down 3.7% – as the stocking-up on home office equipment a year earlier was not repeated.

Sainsbury’s said grocery delivery was 142% up on two years earlier, before the pandemic.

It was a similar story for Ocado which said its joint venture with M&S enjoyed a 20% rise in revenue during the first half of its financial year to 30 May.

Sales hit £1.2bn, the company said, as it enjoyed “strong” order and customer growth despite the easing of restrictions.

Ocado separately announced a new partnership for its robotic warehouse technology with Alcampo in Spain.

Its shares rose 2% in early deals while Sainsbury’s gains were more limited – at 0.6%.

The pair delivered their trading updates at a time of vigorous takeover speculation across the grocery sector, given a £6.3bn bid for Morrisons being accepted over the weekend.

City analysts believe Sainsbury’s is also being eyed – with Amazon potentially among suitors as it expands its own, fledgling, grocery interests in the UK.

Sainsbury’s chief executive Simon Roberts moved to distance his business from the talk on Tuesday, telling a call with analysts he was focused on delivering his strategy and would not speculate on the wider industry moves.

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