Food sales rose by almost 5% in September as retail price rises offset inflation, according to the latest figures from the British Retail Consortium’s (BRC) retail sales monitor, the BRC-KPMG.
The data revealed that retail sales grew last month on the back of price rises, while sales volumes continued to shrink as the cost-of-living crisis intensified.
Conducted by the British Retail Consortium’s (BRC) retail sales monitor, the BRC-KPMG, September’s figures illustrated that price inflation was counteracted by a surge in transactions by shoppers over the month.
The BRC-KPMG report revealed that food sales grew 4.6% over the three months to September, compared with the same period last year, but were boosted by inflation. Total retail sales increased by 2.2% in September, rising slightly from 1% growth in August.
Chief executive of the BRC, Helen Dickinson, said the figures showed that people “shopped cautiously” over the month, saying that: “While UK retail sales grew in September, this represented another month of falling sales volumes given high levels of inflation.
“Many households are also preparing for higher energy costs this winter, with blankets, warm clothing, and energy-efficient appliances, such as air dryers and air fryers, all selling well.”
Chief executive officer of IGD, Susan Barratt, added: “Food and drink sales in September fell behind August as the weather cooled and life returned to normal after the holidays.
“However, there was a small uptick in sales in the week following the death of Queen Elizabeth II as the nation came together to mourn her passing, distracted momentarily from the stiffening economic headwinds.”
Elsewhere, spending data from Barclaycard also revealed an increase in sales but highlighted that consumers watching their budgets meant that essential spending grew by the smallest level so far this year, at 3.3%. This slower growth was largely due to supermarkets seeing a small uplift, at 2.8%, while food and drink specialist stores fell back into decline.
Barclaycard director Esme Harwood said energy price increases are “causing concern” for many shoppers.
“Consumers are taking a savvy approach to budgeting as they reduce spending on discretionary items and seek more value in their weekly shop, which is having a knock-on effect on retail and hospitality sectors.”
