Skip to content
Search
AI Powered
Latest Stories

Sales boosted as shoppers seek picnic, barbecue food

Sales boosted as shoppers seek picnic, barbecue food
iStock image

Warmer weather lifted retail sales growth in the UK last month as shoppers grabbed grub for picnics and barbecues, shows latest report released today (3).

According to the latest figures from the British Retail Consortium (BRC) and analysts at KPMG, total amount spent in shops on food rose by 2.9 per cent in the three months to the end of August, up from 2.6 per cent reported the month before.


Overall, retail sales increased by 1.0 per cent year on year in August, against a growth of 4.1 per cent in August 2023. This was above the 3-month average growth of 0.4 per cent and below the 12-month average growth of 1.2 per cent.

Commenting on the figures, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, "Sales growth picked up in August, particularly for food as people came together to host barbecue and picnic gatherings for family and friends, and for summer clothing, health & beauty products as people prepared for trips away and summer social events. While computing did well as university students made the most of summer discounting and readied themselves for the new academic year, other back to school related sales were weaker than normal as some families opted for second hand purchases.

"Following a difficult summer for much of retail, and the possible weakening of consumer spending as energy bills rise come October, many will be waiting for the Chancellor’s Autumn Budget before finalising their investment strategies. Labour’s first budget is a golden opportunity to make good on their manifesto commitment and fix the broken business rates system which is holding back investment in people, places, technology and limiting growth. Decisive action will benefit working people across the country."

Talking about food and drink sector in particular, Sarah Bradbury, CEO, IGD, said, "With the Olympics well under way and Summer in full swing, shoppers found opportunities to enjoy more, smaller-scale occasions during August.

"Comparing the first four weeks of the month against the same period last year yields positive news for the grocery market, as both sales and volumes have seen up-tick since last year and the rate of growth has accelerated from July.

"While Shopper Confidence has remained stable for the third month in a row, the outlook for the year ahead continues with caution. As we approach October's Budget announcement, we expect to see more movement in confidence as shoppers begin to understand what the future might hold."

Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, added that despite summer finally making an appearance, and a slight uptick in consumer confidence, shoppers did not catch-up their spending during August.

"After many tough months of falling sales, sports and travel equipment enjoyed a welcome boost during this key summer holiday period, and sales of clothing also saw a second month of growth on the high street. Food and drink sales were positive on the high street, whilst online retailers saw demand for DIY and gardening items with growth at nearly 11 per cent. Fashion retailers will be hoping sales growth continues as they look to dispose of excess summer stock as we head into the key autumn season."

Consumer sentiment is gradually starting to improve, but there still remains some nervousness around potential tax rises and the cost of putting the heating back on when the cooler weather arrives. The fragile nature of consumer confidence means shoppers will continue to be driven by price and value, moving from brand to brand to find the best price benefit and we are likely to see retailers using promotional activity to seek to win at this, Ellett added.

As green shoots of growth start to appear, those retailers looking to seize on slowly returning consumer confidence will need to demonstrate best value for money, as well as tap in to the “experience” factor as consumers focus their discretionary spend on having fun or experiences over owning more ‘stuff’. Winning retailers will need clear differentiation, targeting specific consumer needs, and executing with consistency and clarity."

More for you

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.

With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors.Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.

Keep ReadingShow less
Post Office cash deposits and withdrawals
Post Office, DPD partners to rollout ‘Click and Collect’ services
Post Office, DPD partners to rollout ‘Click and Collect’ services

Most Horizon scandal victims say it 'destroyed relationships'

Around two thirds (65 per cent) of people affected by the Horizon scandal have said it impacted their family and relationships, while many respondents report estrangement from family members because of the scandal, according to a paper published today (1) by the Post Office Horizon IT Inquiry’s listening project.

The paper title In Your Own Words illustrates the various challenges the Horizon scandal has inflicted on people’s relationships, with respondents reporting the breakdown of relationships, estrangement from family members, and acute loneliness. Some adult children of former sub-postmasters shared how they experienced bullying, financial issues and mental health struggles because of the scandal. Others reported how their parents have died before knowing the truth about the Horizon scandal, which magnified their grief.

Keep ReadingShow less
Wholesalers give cautious welcome to Reeves' budget

iStock image

Wholesalers give cautious welcome to Reeves' budget

The wholesalers have welcomed several measures announced in Chancellor Rachel Reeves's first budget but have raised concern the increase in National Living Wage and Employers National Insurance contributions will add an estimated £110 million in direct wage costs to the wholesale sector.

The wholesalers also pointed out that the lack of clarity on business rates reform means that wholesalers operating large physical premises remain disproportionately impacted by high rates. Without meaningful reform and a set timeline, these businesses will continue to shoulder a heavier burden than those in sectors with minimal property overhead.

Keep ReadingShow less
New benefits scheme for Fed members

New benefits scheme for Fed members

The Federation of Independent Retailers (The Fed) has launched an exclusive benefits scheme for Fed members.

Called FedPlus, the scheme offers a range of discounts on a host of goods and activities, from everyday purchases to luxury products.

Through FedPlus, Fed members will have access to a range of fantastic money-saving benefits covering a wide variety of areas – from health and well-being to home and car essentials, and from food and drink to fashion and tech, entertainment, travel and experiences.

There is a Savings Calculator to show how much has been saved, based on monthly or annual spending, on a range of everyday categories. The Savings Calculator will generate a personal savings total and provide links to the individual deals.

Launching FedPlus, National President Mo Razzaq said: “In my inaugural speech at the Fed’s Annual Conference in June, I spoke about the importance of providing more benefits to help members make money, save money and make business easier.

“Just four months on, we are delighted to bring you FedPlus. This is an exciting new addition to our ever-growing list of member benefits which brings you quick, at your fingertips access to several offers across a wide range of categories so the money in your wallets and purses goes even further in these financially strained times.”

Members can access the scheme through thefedonline.com website. It went live yesterday (October 31).

FedPlus is managed and run for the Fed by Parliament Hill Limited, which has been providing benefit management solutions for membership organisations for the past 20 years. Top name companies offering discounts include Virgin Experience Days, Nuffield Health, Hotpoint, Halfords, Boots, Curry’s and EE.

Tom Sparke, joint managing director and client services director at Parliament Hill, said: “We are looking forward to working with the Fed to assist them in the fantastic support that it provides for its members.

“The Fed has a strong commitment to supporting its members, which aligns with the Parliament Hill ethos of placing the needs of our clients’ members at the heart of what we do.”

Carlsberg Zero
Competition watchdog begins Carlsberg, Britvic merger probe
Competition watchdog begins Carlsberg, Britvic merger probe

Carlsberg shifts marketing focus as drinkers choose cheaper beer

Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.

The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.

Keep ReadingShow less