UK retail sales growth slowed by food decline
Figures for the three month period, March to May, show just how much current retail sales growth is being driven by non-food categories. While overall retail like-for-likes were just 0.8% in the trimester, non-food growth was 3.2%; but this is being significantly restrained by the weakness of food sales with like-for-likes down 2.2%. As food retailers increasingly turn to price cuts to revive sales, sector growth is likely to remain limited due to these deflationary impacts.
The BRC measure of non-food online sales shows that in May the value of remote shopping was up 17.0% over 2013, and well ahead of the 12 month average growth of 14.2%. The penetration rate of online in non-food sales was 18.7% for the month, representing the second highest level recorded after November 2013.
Commenting on food and drink performance Joanne Denney-Finch, Chief Executive, IGD said: "Although there was one encouraging week in the middle of the month, overall food and grocery sales for May were a further disappointment. For food retailers, it will be essential to capitalise on opportunities provided by the summer events and the World Cup in particular. Our ShopperVista research shows that six in ten shoppers are inspired by such events to buy different food and drink."
Source: retailanalysis.igd.com
