Food sales increased 8.4% on a total basis and 8.7% on a like-for-like basis over the three months to July, new data reveals.
The BRC-KPMG Retail Sales Monitor shows food sales figures are above the 12-month total average growth of 7.8%. For the month of July, food was in growth year-on-year.
Sarah Bradbury, Chief Executive at IGD, said: “Food and drink sales continued to grow in July, although the rate of growth was the lowest since January. Sales growth was driven by inflation as volumes remained in negative territory, in part due to the unseasonably wet weather, especially compared to last July’s heatwave.”
She added: “Although IGD’s Shopper Confidence Index increased for the fourth month running, confidence remains low. Shoppers are feeling less pessimistic about their personal finances, but they aren’t yet feeling optimistic; fewer people are experiencing rising energy bills and fewer shoppers expect to be financially worse off in the year ahead. Furthermore, fewer shoppers are concerned about food price rises with 68% expecting them to get more expensive in the next 12 months compared to 89% last July.”
The data shows UK total retail sales increased by 1.5% in July, against a growth of 2.3% in July 2022.
In addition, UK like-for-like retail sales rose by 1.8% in July, compared to an increase of 1.6% in July 2022.
Paul Martin, UK Head of Retail at KPMG, said: “We are starting to see a big rise in the number of promotions that retailers are putting in place in order to get shoppers through the door, as they battle to keep market share. Price-consumers are shopping more carefully, more aware of where bargains can be found and what they are getting for their money – which is biting hard into retail margins and profitability.
“UK consumers have been hugely resilient throughout the cost-of-living crisis, but stubbornly high inflation coupled with rapidly rising interest rates will test their ability and willingness to keep on spending for the rest of this year. Both consumers and retailers are finding that they are having to get used to doing more with less as conditions remain incredibly challenging.”
