Food sales increased 7.9% on a total basis over the three months to October as grocers are investing in lowering prices to help deliver an affordable Christmas.
While food and drink categories continue to drive sales, the 7.9% figure is below the 12-month average growth of 8.5%, according to the latest figures from the British Retail Consortium (BRC) and KPMG.
Total UK retail sales growth slowed to an annual rate of 2.5% in October as households are delaying Christmas spend for upcoming Black Friday sales.
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BRC chief executive Helen Dickinson OBE said that this slow growth also came as “high mortgage and rental costs further shook consumer confidence”.
“Retailers continue to invest in lowering prices and streamlining their operations, part of their commitment to delivering an affordable Christmas for their customers. But this is put at risk by the £470m per year rise in business rates facing retailers next year.
“The Chancellor must freeze rates in the upcoming Autumn Statement, to prevent extra cost pressure, pushing up prices for struggling consumers.”
IGD CEO Sarah Bradbury said the food and drink sector benefitted from “warm weather at the start of the month” and a “slight increase in footfall.”
“Further good news came as inflation continued to fall against the steep increases seen a year ago, with shoppers benefitting from reduced prices, particularly from discounts offered by retailer’s loyalty schemes.”
IGD found that more shoppers expect food prices to fall in 2024 – up to 12%, compared with 8% last month.
However, Bradbury added: “Some 67% expect prices to rise in the year ahead and IGD’s food price inflation forecast is for prices to rise, albeit at a slower rate, indicating there are still challenges ahead for the industry.”
