Total food sales grew 3.1% during 2021, the latest figures from the The British Retail Consortium (BRC) have revealed.
According to the BRC, food sales also increased 0.4% on a total basis and 0.1% on a like-for-like basis over the three months to December 2021. Food sales also remained in growth throughout the month of December, year-on-year.
“Food and drinks sales delivered a strong performance in December 2021 and we’re back in year-on-year growth,” said IGD chief executive Susan Barratt on food and drink performance.
READ MORE: 2021 UK footfall down 33%, BRC reveals
“This is particularly impressive considering the exceptionally strong sales recorded in December 2020 and indicates that many shoppers took advantage of being able to celebrate Christmas this year with family and friends.”
Barratt added that IGD’s Shopper Confidence Index shows that December was a month of two halves.
“Overall confidence remained unchanged from November; but the index declined at the start of the month as further restrictions were announced to curb the rise of Omicron,” she continued.
“However, as most people were able to celebrate with family and friends once again, shopper confidence increased significantly around the festive break.
“Looking ahead and amid inflation reaching a 10-year high in December, the rising cost of living looks set to shape shopper sentiment in 2022 and our ShopperVista data shows that 86% of shoppers expect food to get more expensive in the year ahead, the highest level since January 2016.”
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Despite the welcome festive boost, retailers cannot rest on their laurels. With consumer spend expected to be held back by crippling energy price hikes and rising inflation, not to mention the havoc being caused by operational issues such as supply chain interruptions, and perpetual covid uncertainty, 2022; like the previous two years, is not going to be a walk in the park. However, what is clear, is that those armed with transformational insight will be best placed to create real business impact and better connections with their customers. Both of which will enable continuous evolution which will help retailers find and embrace the opportunities that this year will bring.