2 minute read
Retail Sales
by 55 North
Food sales continue to grow in the face of soaring inflation
The data shows that food sales remained in growth in May, with the Platinum Jubilee celebrations helping sales in the final week of the month.
Food sales remained in decline over the past three months, according to the latest BRC-KPMG Retail Sales Monitor.
The data shows the performance of the Food category continued to improve in May though, with the three-month average year-on-year decline reaching 0.7%, compared with a decline of 1.3% in the period February to April.
On a like-for-like basis, sales were down 1.3% over the three months compared with the same period last year.
However, sales recorded annual growth for the second consecutive month in May, the researchers said, despite demand waning significantly. It is very likely that rising inflation boosted the Food category performance. The Platinum Jubilee celebrations also helped sales in the final week of the month.
Susan Barratt, Chief Executive of the IGD, said: “Whilst the last four weeks show modest growth, we increasingly expect that value sales are being boosted by inflation this year and that underlying volume trends are weaker as shoppers economise to manage the cost-of-living challenges they face.
“Shoppers are finding it incredibly tough right now, and although the Chancellor’s announcement of a cost-ofliving support package may have offered some respite, our Shopper Confidence Index data for May shows that shopper confidence is still incredibly low. Spending priorities are changing rapidly in reaction to continuous price rises, with shopper coping strategies differing by individual life circumstances.
“We anticipate the Jubilee may provide a welcome break and opportunity to celebrate with friends and family, with a third planning to celebrate over the Bank Holiday weekend. However, shoppers face a challenging few months ahead as they look to contend with the rising cost of living.”
Helen Dickinson, Chief Executive of the British Retail Consortium, added: “It is clear the post-pandemic spending bubble has burst, with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation.
“Supply chain issues including rising commodity and transport costs, a tight labour market and higher energy bills are forcing retailers to increase their prices, contributing to wider inflation.”
