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Food sales heat up

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Food sales increased 5.8% on a total basis and 5.5% on a like-for-like basis in the three months to November, according to the latest BRC-KPMG Retail Sales Monitor.

The data reveals that food sales were in growth year-on-year in November.

Overall UK retail sales increased 4.1% on a like-for-like basis from November 2021, when they had increased by 1.8%. This was above the three-month average growth of 2.3% and the 12-month average growth of 1.2%.

On a total basis, retail sales increased by 4.2% in November, against an increase of 5.0% in November 2021. This is above both the three-month average and 12-month average growths of 2.6%.

Susan Barratt, Chief Executive of IGD, said: “With inflation still driving accelerating top-line growth, the UK market continued to see real terms decline in November. However, that decline has slowed versus October with shoppers shifting into recognisable ‘seasonal’ mode as November wore on, while some additional demand also emerged as the World Cup got underway at the end of the month.

“Shopper trust in the industry to maintain good availability of food and groceries dropped to its lowest ever level in November. Well-publicised availability challenges in eggs and poultry may have influenced this decline. Indeed, importance of animal welfare when choosing what to buy dropped to its lowest level since our record began in 2017, as shoppers were forced to choose to go without or buy a product with lower welfare standards.”

Paul Martin, UK Head of Retail AT KPMG, added: “As we enter the last crucial few weeks of the year, retailers will be hoping that consumers continue to focus on the Christmas feel-good factor. For some struggling retailers hit hard as consumer confidence and spending declines, and costs continue to rise, the next few weeks could be critical to their survival.

“Retailers are well aware that in the current environment it is a battle to attract and retain every customer. Given the economic headwinds for the year ahead, with consumer behaviour expected to evolve further as shoppers look to trade down and purchase less, understanding and meeting customer needs will be mission critical for retailers, and it’s a job that keeps getting harder.”

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This website contains images and information relating to tobacco products. Please do not view if you are under 18 years of age.

This publication contains images and information relating to tobacco products. Please do not view if you are under the age of 18 years old.