Notwithstanding a cool June, UK food sales have grown in value and volume over the last quarter, according to BRC-KPMG Retail Sales Monitor data, and IGD has predicted a post-election bump in shopper confidence.
While total UK retail sales dropped 0.2% YOY in June, compared to a growth of 4.9% in June 2023, food sales saw a rise of 1.1% YOY over the three months to June, against a growth of 9.8% in June 2023.
The report observed that this increase was not as marked as the growth observed in the preceding three months leading up to May, indicating “a steady, rather than rapid, rebound in consumer spending behaviours within the food sector”.
IGD CEO Sarah Bradbury, said: “Despite unseasonable, cool weather throughout most of June, the grocery retail market has enjoyed both value and volume growth in the last month, compared to June 2023.
“Notably, value and volume performance improved in the final week of June, coinciding with the brief but intense heatwave felt across the UK. It is also worth keeping in mind that although value and volume growth is lower compared to last month’s performance, the market is annualising against significant growth that occurred in June 2023.”
She added that the election was likely to aid sales this month. “While the election campaign has not impacted shopper confidence during June, we might expect to see a boost following the election,” she said. “We have seen a positive bump for shopper confidence immediately following the three previous general elections, therefore we should expect something similar as we move through July.”
The BRC was hopeful that the new government would implement positive changes. The report said: “With the recent change in government, the industry is hopeful for new policies and measures that will stimulate economic growth, enhance consumer confidence, and drive spending.”
