Value of UK food sales climb in June despite soaring inflation
Total UK food sales were up by 2.2% during the three months to June and up by 1.6% on a like-for-like basis, according to the latest British Retail Consortium-KPMG tracker. This contrasts with the 1% drop in overall retail sales in June, the third fall in a row as consumers feel the pressure of runaway inflation. The current figure of 9.1% is the highest for 40 years, and is predicted to surpass 11% in the autumn when the energy price cap is raised.
CEO of research institute IGD, Susan Barratt, commented that despite the increases in the value of food purchases, the downward trend for food volumes means the outlook continues to be challenging. However, good weather might provide a welcome boost in July.
Barratt said: “We’re forecasting that food inflation will reach 15% this summer and our ShopperVista research shows that shoppers are increasingly trying to save money in every part of their lives. Unsurprisingly, shopping habits are changing; some 60% of shoppers are now spending time to save money, up from 55% in March. With record petrol prices, being able to walk to a grocery store is also increasingly important with 27% of shoppers agreeing this is a driver of store choice, compared to 24% in May.”