Food sales growth experienced a slowdown in September, significantly influenced by unfavorable weather conditions.
- According to the BRC-KPMG retail sales monitor, food sales, although up 3.1% year-on-year, fell short of the 12-month average growth rate of 4.4%.
- September’s food sales growth was notably lower compared to a 7.4% rise in the same month last year, reflecting a significant deceleration.
- Retailers, anticipating the ‘golden quarter,’ commenced seasonal offerings earlier than usual, despite the overall slowdown.
- Economic warnings and an impending Autumn Budget have further dampened consumer confidence, as cited by industry leaders.
In September, the food sector witnessed a reduction in growth velocity, as highlighted by the latest figures from the British Retail Consortium (BRC)-KPMG retail sales monitor. Compared to the previous year’s robust growth of 7.4%, this year’s increase of 3.1% indicates a noticeable deceleration. This performance was also below the 12-month average of 4.4%. Seasoned observers point to the adverse wet weather conditions as a key factor impacting consumer behavior and sales patterns.
Sarah Bradbury, CEO of IGD, remarked on the slower pace of growth in the grocery retail market, attributing it to both adverse weather and cautious economic signals from the government. “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,” she explained.
Despite the sluggish growth in the food sector, the overall retail industry showed signs of resilience. BRC chief executive Helen Dickinson noted that total retail sales enjoyed their “strongest growth in six months” during September, driven by better-than-expected performance in non-food categories. Total retail sales increased by 2% year-on-year, which was above the three-month average growth of 1.2%. This highlights a divergence between food and non-food retail performance.
Retailers have begun to strategize for the forthcoming ‘golden quarter,’ implementing seasonal ranges earlier to capitalize on the key trading period. The strategic adjustments underscore the retail sector’s proactive measures in response to current market challenges and consumer trends.
The economic outlook remains a concern for both retailers and consumers. With the approaching Autumn Budget and rising energy prices, consumer confidence is expected to be further tested. Sarah Bradbury indicated that these factors could lead to a downturn in shopper confidence, complicating the retail landscape in the months ahead. Helen Dickinson emphasized the need for decisive governmental actions, such as the proposed 20% Retail Rates Corrector, to stimulate investment and foster economic growth across the country.
The interplay of adverse weather conditions and economic uncertainty continues to shape the trajectory of food sales growth.
