Food sales growth impacted by inflation

Finance

Food sales rose fractionally in the three months to February compared to last year, as inflation starts to bite, according to the latest figures from the British Retail Consortium (BRC)

The trade association reported that over the three months to February, food sales were up  0.1% but also decreased by 0.3% on a like-for-like basis. This is below the 12-month total average growth of 1.7%.

Additionally, for the single month of February food sales were down compared to last year.

The BRC warned that sales figures were not adjusted for inflation. Therefore, a portion of the sales growth will reflect rising prices rather than increased volumes.

READ MORE: January food sales fall to lowest level since May 2021

“Food and drink sales put in a resilient performance in February and although the market isn’t performing at the same rate as the lockdown-boosted growth of 2021, it remains elevated compared to 2020,” Institute of Grocery Distribution (IGD) chief executive Susan Barratt said.

“Part of this will be down to inflation of course, which is undoubtedly playing a role, as shoppers face the fastest rise in the cost of living in 30 years.

“Against this backdrop, it’s no surprise that IGD’s Shopper Confidence Index continued its decline in February, reaching another all-time low since the index started in 2013.

“Anxiety among shoppers has no doubt been exacerbated by continued rising inflation, Ofgem’s confirmation that the energy price cap will increase by 54% in April and uncertainty over how Russia’s intervention in Ukraine will impact supply chains and food prices.”

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