Data: Food sales continue to increase in October
UK retail sales growth for food and groceries continued to increase in the four weeks between 5 October and 1 November, according to the latest figures from the British Retail Consortium (BRC).
Food sales grew by 3.5% year-over-year in October, compared to a 2.6% increase in the same period a year prior.
However, the rate of total retail sales growth slowed down to 1.6% year-on-year in October, which is lower than the 12-month average of 2.1%.
The slowdown in discretionary spending was due to consumers waiting for Black Friday and the cautious consumer sentiment ahead of the upcoming Autumn Budget, suggested the BRC.
Sarah Bradbury, CEO, IGD, said: “Shopper focus has shifted towards controlling their spending more tightly this month for food and grocery shopping. Confidence has dipped, with shoppers prioritising saving money over quality for the first time this year. The news of potential tax rises will concern many shoppers, even as food price inflation eased somewhat.
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“With the job market stalling and the gap between pay growth and price rises narrowing, overall shoppers aren’t feeling much benefit. Looking ahead, we predict shoppers will be extra cautious in the short term to ensure they can afford to treat themselves at Christmas. Depending on the impact of the Budget, the festive period will provide opportunities for trade-ups.”
BRC chief executive Helen Dickinson added: “Food sales also saw good growth, but this was mostly driven by higher prices rather than higher volumes. Retailers are counting on Black Friday to deliver a vital boost, but looming Budget decisions risk undermining fragile consumer confidence.
“With demand weak and business rates unresolved, retailers face hard choices on investment and recruitment. A business rates surtax on retail would put major stores and thousands of jobs at risk. The Chancellor should use the Budget to remove this threat and help curb inflation for businesses and families.”
