Grocery store sales volumes rise for first time in 3 months

food inflation | grocery store
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Food store sales volumes increased for the first time in three months in November, rising by 0.5%, new data shows.

According to the latest retail sales figures from the Office for National Statistics (ONS), sales volumes increased most strongly within supermarkets.

Across all retailing, volume sales rose by just 0.2% in November.

However, online, value sales fell across all main sectors for the second month in a row by 4.3% last month, marking the largest drop since March 2022.


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Meanwhile, online sales at food stores specifically, fell by 2.9%.

Total spend – the sum of in-store and online sales – rose by 0.3% over the month and as a result, the proportion of sales made online decreased from 27.5% in October 2024 to 26.2% in November, its lowest level since February 2024.

British Retail Consortium director of insight Kris Hamer said: “Given the shaky start to the festive season, retailers will be looking at the £7bn in new costs from the Budget facing the industry in 2025 with increased concern.

“Higher employer national insurance contributions, a higher National Living Wage, and a new packaging levy will heap pressure on an industry that is already paying more than its fair share of tax.”

He added: “With sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment. To mitigate this, government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”

Last month, more than 70 UK retailers warned Chancellor Rachel Reeves that her decision to increase employers’ National Insurance contributions in the Budget will lead to “inevitable” job cuts and price rises.

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Grocery store sales volumes rise for first time in 3 months

food inflation | grocery store
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Food store sales volumes increased for the first time in three months in November, rising by 0.5%, new data shows.

According to the latest retail sales figures from the Office for National Statistics (ONS), sales volumes increased most strongly within supermarkets.

Across all retailing, volume sales rose by just 0.2% in November.

However, online, value sales fell across all main sectors for the second month in a row by 4.3% last month, marking the largest drop since March 2022.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


Meanwhile, online sales at food stores specifically, fell by 2.9%.

Total spend – the sum of in-store and online sales – rose by 0.3% over the month and as a result, the proportion of sales made online decreased from 27.5% in October 2024 to 26.2% in November, its lowest level since February 2024.

British Retail Consortium director of insight Kris Hamer said: “Given the shaky start to the festive season, retailers will be looking at the £7bn in new costs from the Budget facing the industry in 2025 with increased concern.

“Higher employer national insurance contributions, a higher National Living Wage, and a new packaging levy will heap pressure on an industry that is already paying more than its fair share of tax.”

He added: “With sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment. To mitigate this, government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”

Last month, more than 70 UK retailers warned Chancellor Rachel Reeves that her decision to increase employers’ National Insurance contributions in the Budget will lead to “inevitable” job cuts and price rises.

NewsSupermarkets

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