Food sales increased 5.1% on a total basis and 4.7% on a like-for-like basis over the three months to October, according to the BRC-KPMG Retail Sales Monitor.
This is above the 12-month total average growth of 1.5%, the data shows. For the month of October, food was in growth year-on-year.
However, Susan Barratt, Chief Executive of IGD, says volume sales over the period were “notably negative”.
She added: “Set against a turbulent backdrop with much uncertainty in both politics and the economy, shoppers are feeling cautious and are holding back their spending. The food industry will hope that upcoming events like the World Cup and Christmas will encourage shoppers to loosen the purse strings.”
Paul Martin, UK Head of Retail at KPMG, said: “Retailers will be hedging their bets on a successful World Cup and Black Friday to boost sales during the crucial golden quarter. Given the economic headwinds, it is unlikely that the usual festive boost will be enough to counteract the ongoing issues that retailers face with rising costs, squeezed margins and falling demand.
“Many may feel that they have little choice but to reduce prices to hold onto customers but with their own inflationary pressures to contend with, bumper promotions before Christmas could damage already tight margins further. Whilst Christmas is by no means cancelled as consumers focus on one bright spot amongst the economic clouds, retailers are facing possibly their toughest festive season in a decade as shoppers look to trade down, search out bargains and purchase less to meet the economic challenges ahead.”
