Food sales have risen by 2.3% in July, ending the three-moth consecutive decline, according to the British Retail Consortium (BRC)-KPMG retail sales monitor.
Despite hot weather helping to boost sales, the Office for National Statistics revealed inflation hit a 40-year high in June at 9.4%, with industry experts saying price rises across products is the main reason behind this growth in sales.
These price rises have also led to a decline in the volume of products sold as shoppers are cutting down on their usual weekly shops to save money.
“Sales improved in July as the heatwave boosted sales of hot weather essentials,” British Retail Consortium (BRC) chief executive, Helen Dickinson said.
READ MORE: Big 4 grocers call on gov’t to slash business rates
“Summer clothing, picnic treats, and electric fans all benefited from the record temperatures as consumers made the most of the sunshine.
“However, with inflation at over 9%, many retailers are still contending with falling sales volumes during what remains an incredibly difficult trading period.”
KPMG UK head of retail, Paul Martin added: “The summer could be the lull before the storm with conditions set to get tougher as consumers arrive back from summer breaks to holiday credit card bills, another energy price hike and rising interest rates.
“With stronger cost-of-living headwinds on the horizon, consumers will have to prioritise essentials, and discretionary product spending will come under pressure.”
According to figures by Barclaycard, credit card purchases on essential items rose by 7% year on year, caused by higher food and fuel prices.
Barclaycard head of consumer products, Jose Carvalho added: “Inflation continues to have a noticeable impact, with price rises forcing shoppers to spend more on essential everyday items such as fuel, butter and milk, and to cut back on some discretionary expenditure such as meals and drinks out, and holidays abroad.”
Click here to sign up to Grocery Gazette’s free daily email newsletter
