Food sales fall by 1.3% amid cost of living crisis

Finance

Food sales have fallen by 1.3% on like-for-like basis over the past three months, as cost of living crisis continues to affect shoppers.

According to the latest monthly BRC-KPMG retail sales monitor, May experienced a 1.1% decrease in total retail sales.

The figure signifies a slowdown in shopping activity following an average growth of 0.7% over the last three months. Like for like sales were also down 1.5% in May, compared to the same period last year.

READ MORE: Grocery inflation at highest level in 13 years

However, sales figures hadn’t been adjusted for rising price inflation, meaning sales volumes are expected to show a much steeper decline.

“Sales continued to see declines as the cost-of-living crunch squeezed consumer demand. Higher value items, such as furniture and electronics, took the biggest hit as shoppers reconsidered major purchases during this difficult time,” BRC CEO Helen Dickinson said.

“Nonetheless, fashion and beauty did well as people prepared for holidays abroad and the summer’s social calendar; with red, white and blue outfits adorning shopping carts ahead of the Jubilee weekend.

IGD chief executive of research firm Susan Barratt added: “Whilst the last four weeks show modest growth, we increasingly expect that value sales are being boosted by inflation this year and that underlying volume trends are weaker as shoppers economise to manage the cost-of-living challenges they face.”

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