Food sales in the UK rose by 2.4% as consumers prepare for holiday spending.
- November saw year-on-year growth in grocery market value and volume, indicating festive optimism.
- A survey revealed that 41% of shoppers intend to spend freely this Christmas, up from 36% last year.
- Economic pressures still influence consumer spending, particularly affecting out-of-home leisure activities.
- Retailers hope delayed seasonal spending rebounds later in December.
In the months approaching November, UK food sales rose by 2.4%. This increase is part of an anticipated trend of greater spending during the Christmas period, as reported by the British Retail Consortium (BRC) alongside KPMG. This figure, while notable, falls short of the 3.7% average seen over the past year, highlighting both the growth and challenges retailers face.
According to Sarah Bradbury, CEO of IGD, November showed growth in both the value and volume of grocery sales. Their latest research supports a sense of festive optimism with an increase in the number of shoppers planning to spend freely this season, rising to 41% compared to last year’s 36%. This change suggests an eagerness to celebrate despite ongoing economic concerns.
Despite this positivity, the economic backdrop remains challenging, with many consumers focused on budgeting. Bradbury noted that while there is optimism surrounding the festive season, spending decisions are still heavily influenced by economic issues, particularly affecting costs tied to out-of-home activities.
Overall UK retail sales dropped by 3.3% last month, a stark contrast to the 2.6% growth from November of the previous year. This decline is partly attributed to the shift of Black Friday sales into December, as explained by BRC’s chief executive, Helen Dickinson. She highlighted that low consumer confidence and rising energy bills have dampened non-food spending.
Dickinson expressed hopes that reduced spending at the start of the festive season reflects a delay rather than a decline, with retailers anticipating that consumers will engage in last-minute shopping closer to Christmas. Without this pick-up in activity, retailers may face financial strains from reduced revenues coupled with substantial costs in the upcoming year.
The anticipation of increased spending this holiday season is tempered by ongoing economic pressures, leaving retailers hopeful for a late surge in consumer activity.
