Food sales increased 7.9% on a total basis over the three months to October, new figures reveal.
The latest BRC-KPMG Retail Sales Monitor reveals food was in growth year-on-year in October.
Sarah Bradbury, Chief Executive of IGD, said: “October’s food and drink sales enjoyed a slight increase in volume and value sales compared to last year, but value sales were slightly down on September’s performance. As the country enjoyed warm weather at the start of the month the market benefitted with 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.”
Meanwhile, UK Total retail sales increased by 2.5% in October, against a growth of 1.6% in October 2022. This was below the three-month average growth of 3.1% and the 12-month average growth of 4.2%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Retail sales growth slowed as high mortgage and rental costs further shook consumer confidence. Many households are also delaying their Christmas spending in the hopes they can grab a bargain in the upcoming Black Friday sales. The cost-of-living squeeze meant more was spent on lower-price indulgences, such as beauty products – the so-called ‘Lipstick Effect’.”
Paul Martin, UK Head of Retail, KPMG, said: “Retailers are facing a challenging Christmas, competing for a shrinking share of wallet, driven by promotions that will no doubt cut into already stretched margins. With spending levels expected to be much more muted this year, the run up to Christmas could be the most challenging we’ve seen since pre-pandemic days.”
