Recent figures reveal a promising start to the festive shopping season as food sales increased by 2.4% in the three months leading up to November. This surge contrasts the overall trend in retail, where a decline was noted, indicating a specific consumer interest in food purchases amidst the economic pressures.
The British Retail Consortium (BRC)-KPMG retail sales monitor reported that despite being below the 12-month average growth of 3.7%, food sales experienced a year-on-year rise for November, distinguishing it as one of the few categories with such growth. This data suggests that consumers are prioritising food shopping during the festive period, possibly at the expense of other goods.
Sarah Bradbury, CEO of IGD, pointed out that their research indicates a 5% increase from last year in the number of shoppers willing to spend freely this Christmas. ‘November’s grocery market performance shows year-on-year growth in both value and volume,’ she remarked. However, Bradbury warned that despite this optimistic trend, economic caution remains, potentially limiting the extent of holiday spending, especially on activities outside the home.
Meanwhile, the overall UK retail sales faced a downturn, decreasing by 3.3% compared to the modest growth seen in November of the previous year. Helen Dickinson, BRC’s chief executive, commented on this unfavourable start to the festive season, attributing the drop primarily to the shifted timing of Black Friday into December’s figures. She noted, ‘Low consumer confidence and rising energy bills have clearly dented non-food spending.’
Dickinson expressed hope that the postponement of seasonal spending would mean a concentrated shopping push in the weeks leading to Christmas rather than a decline. She highlighted the dual pressure retailers face from reduced revenues and escalating costs, underscoring the critical economic landscape they must navigate.
In summary, while food sales have shown resilience and growth in the face of broader retail challenges, the overall economic conditions and consumer confidence will play pivotal roles in shaping the final stages of this season’s retail performance.
