Supermarket sales volumes fell by 0.9% in August this year as a result of the ongoing cost-of-living crisis, soaring energy bills and rising inflation.
According to new data by the Office for National Statistics (ONS), specialist food stores-such as bakers and butchers- saw a 1.9% fall in sales, where as alcohol and tobacco sales saw a 6.3% increase.
Food store sales volumes also fell by 0.8% in August 2022. however were 1.4% below their pre- Covid February 2020 levels.
“Essential spending such as food sales took a 0.8% hit and nearly 2% less fuel flowed through UK petrol forecourts in spite of price reductions. Generally, consumers are shopping around harder, with Aldi overtaking Morrisons to become the UK’s 4th largest supermarket this month,” BJSS head of retail Ralph Robinson said.
“Even Sainsbury’s, once the king of mid-market retail, is matching Aldi prices, to the tune of a £65 million investment in prices this September. For customers and retailers alike, this thrift-focussed trend is here to stay, highlighting the lack of consumer confidence, which, according to GfK, sank to its lowest level since records began in 1974.”
Fuel sales volumes decreased by 1.7% in August 2022, following a rise of 0.3% in July 2022. As a result, sales volumes were 9% below their pre-coronavirus February 2020 levels.
This comes as the data revealed retail sales volumes fell by 1.6% in August, following a rise of 0.4% in July 2022.
“Feedback from retailers suggests that consumers are cutting back on spending because of increased prices and affordability concerns,” the ONS said.
Retail sales values, unadjusted for price changes, decreased by 1.7% in August 2022, following a rise of 1.4% in July 2022, the ONS revealed.
When compared with the pre-Covid level in February 2020, total retail sales were 0.5% and 13.7% higher in volume and value terms, respectively.
Rosalind Hunter, partner at Simon-Kucher & Partners added: “With a new administration in government, only time will tell if the worst of the cost-of-living crisis can be neutralised before it starts having a longer-term impact on the high-street, similar to the effects seen during the pandemic shutdowns and the economic crisis of 2007/8.”
