More

    Inflation drives food sales in July as volumes continue to dip

    Photo: iStock

    Retail sales slowed in July as inclement weather dampened consumer spend while retail price inflation has slowed, BRC data showed.

    UK Total retail sales increased by 1.5 per cent in July, against a growth of 2.3 per cent in July last year. However, like-for-like retail sales fared better, increasing by 1.8 per cent in July, against 1.6 per cent in July 2022.

    Food sales increased 8.4 per cent on a Total basis and 8.7 per cent on a like-for-like basis over the three months to July. For the month of July, food was in growth year-on-year.

    Non-food sales decreased 0.5 per cent on a Total basis and 0.8 per cent on a like-for-like basis over the three-months to July, and the category was in decline year-on-year for the month of July.

    Over the three months to July, in-store non-food sales increased 1.2 per cent on a Total basis and 0.8 per cent on a Like-for-like basis since July 2022. Online non-food sales decreased by 6.9 per cent in July, against a decline of 3.9 per cent in July 2022.

    The proportion of non-food items bought online (penetration rate) decreased to 34.7 per cent in July from 35.3 per cent in July 2022.

    “The slowing pace of retail price inflation fed through into slower sales this July. Spend was further depressed by the damp weather, which did no favours to sales of clothing, and other seasonal goods,” Helen Dickinson, chief executive of the British Retail Consortium (BRC), said:

    “While consumer confidence is generally improving, it remains below longer term levels. And with last week’s rise in interest rates pushing mortgage rates up ever higher, the government must get a handle on the economy, offering a solution to languishing GDP growth in a way that supports both households and businesses.”

    Commenting on the food and drink sector performance, Sarah Bradbury, IGD chief executive 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.”

    Paul Martin, UK head of retail at KPMG, said retailers are increasingly rely on promotions to get shoppers through the door.

    “Price conscious 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,” he said.

    “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.”

    Latest

    Schulstad Bakery Solutions launches new Danish pastry range

    Lantmännen Unibake’s Schulstad Bakery Solutions brand has launched its...

    Capri-Sun brings free sports sessions to families

    To celebrate 2024’s ‘Summer of Sport’,from May to August...

    General Mills makes additional £50,000 donation to Fareshare

    General Mills has announced an additional £50,000 donation to...

    Amazon union recognition looms as historic vote begins

    Workers at the company’s Coventry fulfilment centre begin ballot...

    Don't miss

    Schulstad Bakery Solutions launches new Danish pastry range

    Lantmännen Unibake’s Schulstad Bakery Solutions brand has launched its...

    Capri-Sun brings free sports sessions to families

    To celebrate 2024’s ‘Summer of Sport’,from May to August...

    General Mills makes additional £50,000 donation to Fareshare

    General Mills has announced an additional £50,000 donation to...

    Amazon union recognition looms as historic vote begins

    Workers at the company’s Coventry fulfilment centre begin ballot...

    Cheerios unveils new campaign offering a trip to Paris Paralympic Games        

    Nestlé Cereals has announced the launch of its new...

    Capri-Sun brings free sports sessions to families

    To celebrate 2024’s ‘Summer of Sport’,from May to August 2024, shoppers purchasing selected packs of Capri-Sun will be able to claim a free sports session in...

    General Mills makes additional £50,000 donation to Fareshare

    General Mills has announced an additional £50,000 donation to FareShare to further support food security across the East of England and employability training initiatives...

    Amazon union recognition looms as historic vote begins

    Workers at the company’s Coventry fulfilment centre begin ballot process for legally binding union rights vote The GMB union announced today that the ballot period...