Food drives UK retail sales growth in July
An increase in food purchases has driven the growth in UK retail sales in July, as shopper confidence continues to rise.
According to the latest BRC-KPMG retail sales monitor, total UK retail sales increased by 0.5% year on year in July against a growth of 1.5% over the same period the year before.
Meanwhile, for the month of July, food was in growth year on year, with sales up 2.6% over the three months to July against a growth of 8.4% this time last year.
Food and drink volumes were also up, higher than they were the year prior. This marks three consecutive months of year on year volume growth for the grocery market.
BRC chief executive Helen Dickinson said: “Retail sales returned to growth, driven by an increase in food purchases.
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“Now that election uncertainty is over and government is rolling out plans to kickstart economic growth, retailers are planning their own investment strategies. Many will be looking to the Autumn Budget, keen to see an end to business rates rises under the new Labour government. They will also be looking for any details of the reform of the whole business rates system, promised in Labour’s manifesto.”
Commenting on the food and drink sector performance, IGD CEO Sarah Bradbury said that sales were “particularly strong in the final two weeks of the month” which she added were “undoubtedly helped by the mini heatwave the UK enjoyed at the time which saw the hottest day of the year recorded so far”.
She added: “Shopper confidence rose nine points in the days immediately after the election, while England’s success at the Euros inspired a nine-point increase in focus on quality. Although, they have both fallen back in line since.
“An August heatwave and GB’s successes at the Olympics are likely to cause a short-term uplift in confidence and therefore more trade-up opportunities as we’ve previously seen at the Euros. This would continue a three-month trend of continued growth for grocery, as spurred on by the weather.”
