UK Food & Grocery Sector Report summary
July 2024
Period covered: 26 May – 29 June 2024
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Food & Grocery Sales
Food & Grocery sales fell xx% YoY in June, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
Key factors impacted this performance:
Cooler weather: June was wetter, and cooler compared to last year’s record June temperatures, dampening seasonal sales and creating tough annual comparisons for grocery spend.
Euro 2024: The UEFA Euro 2024 football tournament kicked off in mid-June, featuring both England and Scotland. This helped drive spending on alcohol and party food as families and friends gathered to support their team.
Lower Inflation: Easing food inflation, compared to double-digit price rises a year ago, is contributing to slower growth in value terms but is supporting a recovery in volumes. Basket sizes and store visit frequency are increasing as consumer sentiment picks up.
Cautious Consumers: Personal finances are improving, as inflation returns to target and real wage growth strengthens. Yet, many households remain cautious, adopting a ‘wait and see’ approach in June as the run-up to a general election created political and economic uncertainty.
Promotional activity lifts store visits
As we cycle through high inflation comparisons, the quest for volume growth becomes a priority for retailers. Supermarkets leaned into promotions and loyalty offers in June, including dine-in deals and targeted deals for Father’s Day and Euro 2024, to drive store visits and capture basket share from rivals.
These promotional activities align with a broader consumer trend of cutting back on dining out. Restaurant spending dropped by xx% YoY in June, marking the xx month of double-digit decline (Barclaycard), pushing more consumers towards grocery shopping.
Visits to supermarket stores increased by xx% YoY over the four weeks to 7 July, while sales of branded products rose by xx%, outpacing own-label items at xx% (Kantar). xx beer and lager sales were on promotion in the four weeks to 9 June, with sales of beer surging by xx% on days England played (Kantar). But, with many matches played on “school nights”, some Britons chose moderation. Spending on no and low-alcohol beer was up xx% on matchdays (Kantar).
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Online grocery sales ease in June
Source: Retail Economics, ONS, seasonally adjusted
