Retail sales volumes rose by 0.3 per cent in September 2024 following a rise of 1.0 per cent in August, official data showed Friday.
The non-food stores sales volumes – the total of department, clothing, household and other non-food stores – rose by 2.5 per cent in September, following a rise of 0.6 per cent in August, the Office for National Statistics (ONS) reported.
The strongest sub-sector growth was from other non-food stores, which rose by 5.5 per cent over the month to September 2024. Within “other non-food”, computer and telecommunications retailers had the strongest contribution to growth.
Partly offsetting this, supermarkets sales volumes fell by 2.4 per cent leading to the largest month-on-month fall for food stores this year. Overall, food sales fell 1.9 per cent last month.
“Comments from retailers pointed to unseasonably poor weather and consumers continuing to cut back on luxury food items,” the ONS said in its report
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, noted that the Autumn/Winter wardrobe refresh and back-to-school rush propped up retail sales in September delivering a post-summer boost, despite record-breaking rainfall and a sharp drop in consumer confidence in September.
“As we enter the all-important Golden Quarter, retailers will be doing their best to pull out all the stops to ensure retail sales continue to pick up pace during this crucial period, particularly as competition for spend increases in the lead up to Christmas. However, this is largely dependent on consumers feeling more confident to spend, and with talks of a “painful” Autumn Budget many will undoubtably be feeling nervous about what’s to come on 30 October,” Baker said.
“Retailers too, are in need of clarity and support from the government. While business rates reform continues to be their number one plea, the prospect of an increase in workforce-related costs will be crippling news for many. The sector remains optimistic about the outlook for 2025, but it needs the government’s help to make this a reality.”
Silvia Rindone, EY UK&I Retail Lead, also said the next few months will be critical as retailers brace themselves for the Golden Quarter, with key shopping events such as Halloween and Black Friday drawing near.
“Retail sales could still be volatile in the run up to Christmas, with retailers who can target particular customers seeing more success,” Rindone said.
“However, this year's discounting efforts seem to be more spread, indicating less pressing need to offload stock as retailers have learned improved inventory management. However, the possibility of a 'Black November' remains, as retailers spread out the trading period to avoid the intense competition of the year-end rush.
"As we progress through the final quarter, it will be imperative for retailers to closely monitor sales volumes, inventory, and the competitive landscape. The balance between timely promotions and the risk of premature discounting is delicate; retailers must navigate this with care to avoid the pitfalls of either scenario—be it stock shortages or overstock. It's a precarious path that demands strategic foresight and agility."
Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.
According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10 per cent compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15 per cent or more, which Vypr said shows the importance of price in driving consumers to adopt sustainable shopping habits.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86 per cent among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations.
“For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label ‘100 per cent Recycled Packaging’ and found price remained the key purchase decision-making factor for most consumers.”
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers are more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be seen here.
Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.
The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.
The E-Loyalty Extra loyalty scheme will be accessible by retailers via WhatsApp platform and will allow retailers to capture evidence of compliance by simply clicking “take photo” button.
With the addition of another digital enhancement introduced to the group recently – Coupon - based loyalty mechanic, members are now empowered to incentivise and reward customers, driving stronger consumer connections and fostering brand loyalty at a granular level. Retailers can now simply redeem a coupon at the point of check out. Another key digital development within the group is WhatsApp E-Presell which enables Sugro UK’s retail partners to provide advance product volume commitments for new product launches. This functionality is particularly powerful as it ensures that suppliers have accurate forecasts before product launches, enabling better stock availability from day one of product being available on the market.
The ease and speed of using WhatsApp for these commitments simplifies the presell process, ensures accuracy and strengthens relationships across the supply chain.
While other industry players may soon consider introducing similar digital tools, Sugro UK are proud to be at the forefront of enhancing retail-focused digital solutions. This early adoption not only ensures that Sugro UK members remain competitive but also guarantees them access to the best digital tools available in the market. These efforts are part of Sugro UK's ongoing commitment to delivering value to its members and empowering them with innovative solutions for growth and success in an increasingly digital retail environment.
Sugro Head of Commercial and Marketing, Yulia Petitt said: “I am delighted that Sugro UK members are now able to provide photographic evidence of retail compliance and in-store execution to our supplier partners, using a wide range of display and compliance criteria such as planograms, secondary displays, trials, and new product developments (NPDs).These digital features allow members to share real-time proof of execution, enhancing accountability and building supplier confidence. The launch of E-Presell functionality opens a huge digital advantage for the group which will benefit all – members, retailers and suppliers in gaining accurate forecast and ensuring product visibility in store from day one of product being on the market and with the ease of using WhatsApp, the entire pre-sell process becomes a much quicker and easier process to manage for all parties.
"The Group has had 18 consecutive years of growth and, once again, on track to deliver in 2024, with the year-to-date performance of +15% year on year and growth across all categories.” Rob Mannion, CEO of b2b.store, added: “The rate of innovation in the wholesale sector is increasing and these launches are further great examples of that. We’re particularly excited about the developments and different uses of WhatsApp in the industry, with more coming in the pipeline for 2025 – it’s a tool no wholesaler or buying group can afford to ignore because of the level of influence it’s having in the sector and there’s no sign of that direction of travel changing any time soon.”
Sugro UK is proudly owned by its 90 plus independent wholesale members, with a combined turnover of over £2.5 billion.
Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.
Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.
This collaboration is expected to accelerate product launches and drive growth in diverse offerings, including sauces, salsas, marinades, dips, and condiments.
"We have collaborated with Panesar Foods for 17 years, and we are very pleased to welcome the company to Paulig," said Rolf Ladau, CEO of Paulig. "Today, our combined taste expertise and innovation skills unite around a shared ambition: to accelerate our international growth and expand our World Foods offerings."
Bill Panesar, CEO of Panesar Foods, expressed confidence in the partnership, stating, “As Panesar Foods becomes part of Paulig, I am confident that our ambitions for international growth will be realised, and the business will continue to thrive. We share a strong commitment to innovation and delivering high-quality, flavourful products, and I look forward to bringing even more delicious products to the market, together."
Jas Panesar, MD of Panesar Foods, echoed, “This partnership will allow us to reach new markets and deliver our authentic World Food flavors to a broader audience. We look forward to combining our passion for quality food with Paulig’s commitment to sustainability and innovation.”
All 308 Panesar employees will transition to Paulig’s team. Financial details of the transaction remain undisclosed.
Labour MP Mary Glindon has cautioned that a new excise tax on vaping could discourage smokers from switching to less harmful alternatives.
Glindon, who also chairs the All-Party Parliamentary Group for Responsible Vaping, said the chancellor’s proposed tax, which will add £2.20 per 10ml of vaping liquid when it goes into effect on October 1, 2026, will “hurt working people”, who rely on vapes to quit smoking.
“A tax on vaping will only serve to discourage smokers from quitting,” the Newcastle upon Tyne East and Wallsend MP said during a Commons debate on the Budget.
“The tax will also hurt working people … who rely on vaping to keep them off cigarettes.”
Glindon termed the 22p per ml tax as “unsustainably high,” highlighting that it will create one of the highest vaping duties in Europe.
“Currently, many stores sell vaping liquid for refillable devices for 99p. Under the chancellor’s proposals, that will increase by 267 per cent to £3.64,” she added.
Glindon dismissed suggestions that low-cost vaping liquids drive youth vaping, pointing instead to the upcoming Tobacco and Vapes Bill aimed at curbing youth access.
“I fear that the tax on vapes will hurt people who have made the decision to switch from smoking to the less harmful alternative—a decision that has already saved the NHS tens of thousands of pounds per person,” she noted.
The alcohol license of Liverpool convenience store, which had become the “go to” location for illicit sales, has been revoked after a 13-year-old girl had to be taken to hospital after getting drunk on vodka she had purchased unchallenged from the store.
According to local media reports, members of Liverpool Council’s licensing and gambling sub-committee have taken a dim view of the levels of “wholesale breaches and criminal offences” at Old Swan Express on Prescot Road, stripping owner Sinnathamby Arumugasamy of his licence, despite him only gaining permission to trade at the former angling store in February of this year.
Most recently last month, two teenagers managed to buy vodka from the store unchallenged, which led to one of the girls requiring medical attention after consuming the alcohol.
The incident was reported to Merseyside Police, who were represented by PC Nicola Ireland at the hearing. She told the committee how the force had requested CCTV footage to establish the circumstances of the incident but none was provided owing to an “issue” with the shop’s system.
PC Ireland said as a result, officers were not able to pursue a prosecution into the “very, very serious offence” and it had hindered the investigation.
Claire Jones, from the council’s trading standards team told the committee, said there had been “ongoing issues” with the business and the authority had sought to secure the maximum closure order of three months from the courts as a result. She said on multiple occasions, anonymous tip-offs had been received regarding the sale of counterfeit and loose cigarettes as well as illicit vapes.
In July, a 16-year-old volunteer was able to purchase an illicit vape for £12 without being challenged on their age or for identification during a test visit. On that occasion, the sole individual working said they were “just covering” for the owner and on further inspection, a list of available illicit vapes was found in a bin.
A hidden compartment under the counter was also identified containing illegal products. Jones said shops were keeping small quantities on site more often to avoid large seizures when found.
On a separate visit, officers also uncovered a wine bottle with “bits floating in it,” Jones said. Arumugasamy said he had bought this from a man with a van, apologised and said it wouldn’t happen again.
Despite this plea, trading standards officials were able to buy single cans of super strength cider on different occasions, a breach of the licensing conditions.
Arumugasamy told the committee how he was “really very, very sorry” for what had happened and acknowledged the products he sold were illegal. He claimed he had been pressured by people to sell them the products and had been threatened by youngsters in his shop. PC Ireland rejected this claim, saying the force had not been notified of such incidents.
The committee heard how he had previously been a chef for 17 years and was his first shop, having only been granted his licence in February this year. Delivering the committee’s decision that it would revoke Arumugasamy’s licence, Cllr Christine Banks, committee chair, said, “The committee is in no doubt to revoke this licence due to the wholesale breaches and criminal offences committed.
“The committee has no confidence the licence holder will be able to run this premises in a lawful manner in future.”