BUSINESS INTELLIGENCE
RETAIL SALES MONITOR
Food sales struggle in January Data shows food sales have started 2022 on a downbeat note.
F
ood sales decreased 0.1% on a total basis and 0.5% on a like-for-like basis over the three months to January, new data reveals. The latest BRC-KPMG Retail Sales Monitor also shows that food sales were in decline year-on-year. Susan Barratt, Chief Executive of IGD, said: “After a welcome uptick in food and drink sales at Christmas, 2022 has started on a downbeat note with sales struggling to match those of January 2021. Although it was always going to
be a hard benchmark as we were in the financially in the year ahead, up 8% from peak of a third national lockdown in last month. Therefore, we can expect more January last year, with food and drink shoppers to increasingly focus on tightensales surging as a result.” ing their spending in the months ahead.” She added: “With the cost of living The data also showed that total UK rising at its fastest rate in 30 years, our retail sales increased 8.1% on a like-forShopperVista insight reveals that 89% of like basis from January 2021, when they shoppers expect food to get more expen- had increased 7.1%. sive in the year ahead. Coupled Paul Martin, UK Head of Retail with the energy price cap set at KPMG, said: “With Covid With the cost to rise sharply from April, restrictions now eased, and of living rising at its some 39% of shoppers people heading back to fastest rate in 30 years, workplaces, retailers will expect to be worse off BRC-KPMG’s ShopperVista be hoping consumer insight reveals that 89% of shoppers expect food to get confidence remains more expensive in the robust to help offset the year ahead rising cost challenges that they are likely to experience for a while. “We could see a challenging few months ahead if wider macroeconomic conditions start to squeeze household incomes to the point that they start cutting back on retail spending. Retailers are facing their own inflationary pressures and will need to take tough decisions on whether and how to pass on the increase costs they have been sitting on for some time to consumers facing their own financial challenges. We could easily see the health of the sector start to deteriorate if consumers choose to sit on savings to weather the storm.”
26 I SLRMAG.CO.UK / ISSUE 91 / WEDNESDAY 9TH FEBRUARY 2022
