Food sales growth weakened in September due to wet weather, according to the BRC-KPMG monitor.
- Year-on-year food sales rose by 3.1% over the three months to September, down from a 7.4% increase in the previous year.
- The 12-month average food sales growth stood at 4.4%, revealing a slowdown in September.
- Non-food retail sectors performed better than expected, showing strong year-on-year growth.
- Concerns over the Autumn Budget and rising energy prices may impact future consumer confidence.
The growth in food sales experienced a noticeable deceleration in September, attributed to the adverse weather conditions reported by the British Retail Consortium (BRC) and KPMG. Over the three-month period leading up to September, food sales reflected an annual growth of 3.1%. This figure, however, signifies a considerable decline from the 7.4% increase recorded in September of the previous year and falls short of the 12-month average growth rate of 4.4%.
Sarah Bradbury, CEO of IGD, highlighted the impact of weather on the grocery retail market, stating, “Growth in the grocery retail market slackened with the arrival of autumn. September’s sales were still ahead year-on-year, but the pace of increase was down versus August, no doubt depressed by the wet weather as well as cautionary economic messages from the government.”
In contrast, the non-food retail sectors reportedly exceeded performance expectations, as indicated by Helen Dickinson, Chief Executive of the BRC. She noted that UK total retail sales saw their “strongest growth in six months” in September. Overall retail sales climbed by 2% year-on-year, compared to a 2.7% rise during the same period in the preceding year, surpassing the three-month average growth rate of 1.2%.
While shopper confidence remained stable last month, Bradbury expressed concerns over potential declines due to economic factors. She warned, “News of a difficult Autumn Budget and rising energy prices will likely cause a downturn in confidence with cost-of-living concerns remaining front and centre in shoppers’ minds.” Dickinson suggested that proactive measures from the government, such as a 20% Retail Rates Corrector, could stimulate investment and bolster economic growth across the nation.
The trajectory of food sales growth is challenged by unfavourable weather and economic concerns, with potential impacts on future consumer confidence.
