UK food sales rise despite soaring inflation

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UK food sales have increased by 2.2% on a total basis over the three months to June, up 1.6% on a like-for-like basis.

According to the latest British Retail Consortium-KPMG tracker, food sales were higher year-on-year in June alone.

Overall retail sales dropped by 1% in June, the third fall in a row as the cost of living takes its toll on consumers.

This comes as inflation has already hit a 40-year high of 9.1% and is set to soar past 11% in the autumn as the energy price cap is set to be hiked once more.

“Sales volumes are falling to a rate not seen since the depths of the pandemic, as inflation continues to bite, and households cut back spending,” BRC CEO Helen Dickinson said.

READ MORE: Food inflation hits highest rate since 2009

Even a boost from the Queen’s Platinum Jubilee celebrations failed to offset the slowdown in spending, the tracker revealed.

Dickinson added: “While the jubilee weekend gave food sales a temporary boost, and fashion sales benefitted from the summer holiday and wedding season, this was not enough to counter the substantial slowdown in consumer spending.”

Commenting on the statistics the CEO of the IGD food and drink sector performance, Susan Barratt said that overall downward sales trend for volumes means the outlook continues to be challenging,

However,  good weather “might provide a welcome boost in July”, she continued.

According to separate statistics by the IGD, its Shopper Confidence Index reached a new record low in June as shoppers contend with the cost-of-living crisis.

She said: “We’re forecasting that food inflation will reach 15% this summer and our ShopperVista research shows that shoppers are increasingly trying to save money in every part of their lives.

“Unsurprisingly, shopping habits are changing; some 60% of shoppers are now spending time to save money, up from 55% in March. With record petrol prices, being able to walk to a grocery store is also increasingly important with 27% of shoppers agreeing this is a driver of store choice, compared to 24% in May”

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