Food sales did well in early July thanks to warm weather and a packed sporting schedule, shows a recent report, though own label products continue to outperform brands.
According to data released by British Retail Consortium (BRC) today (Aug 12), food sales increased by 3.9 per cent year on year in July, against a growth of 3.3 per cent in July 2024. This was above the 12-month average growth of 3.2 per cent.
Overall, UK total retail sales increased by 2.5 per cent year on year in July, against a growth of 0.5 per cent in July 2024. This was above the 12-month average growth of 1.9 per cent.
Non-Food sales increased by 1.4 per cent year on year in July, against a decline of 1.8 per cent in July 2024. This was above the 12-month average growth of 0.8 per cent.
In-Store Non-Food sales increased by 1.9 per cent year on year in July, against a decline of 3 per cent in July 2024. This was above the 12-month average growth of 0.2 per cent.
Commenting on the figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said, “Food sales did well in early July thanks to warm weather and a packed sporting schedule, though this momentum failed to hold for the rest of the month.
"Rising food inflation meant increased spending was more a result of higher prices than improved demand. Fashion sold well early in the month, but deteriorated as weather worsened, while homeware and indoor furniture grew steadily, recovering from the previous year’s decline.
"Gaming and toys sold particularly well, as nostalgic adults purchased products like Lego.
“With sales growth at these levels, it is barely touching the sides of covering the £7bn new costs imposed on retailers at the last Budget.
"If the upcoming Autumn Budget sees more taxes levied on retailers’ shoulders many will be forced to make difficult choices about the future of shops and jobs, and ongoing pressure would push prices higher.
"Ultimately, this means more families struggling, particularly those on lower incomes, reduced consumer spending and a drag on economic growth.”
Food & Drinks Sector Performance, Sarah Bradbury, CEO, IGD, said, "July’s shopper confidence fell to zero for the first time since April, cooling alongside the weather despite boosts from Wimbledon and the Lionesses’ win.
"More households are feeling the pinch yet trust in the industry rose by three points. With food price inflation climbing to 4.5 per cent and economic uncertainty growing, shoppers face a tough outlook.
"Own label products continue to outperform brands, but modest volume growth shows inflation is masking any gains. A potential interest rate cut, and a sunny bank holiday could offer a much-needed boost at the end of the summer.”