UK Food & Grocery Sector Report summary
September 2024
Period covered: Period covered: 28 July – 24 August 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 rose xx% YoY in August, against robust xx% growth a year earlier, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
Key factors impacted this performance:
Mini-heatwave: August saw above-average temperatures, including a mini-heatwave that peaked on 12 August, the hottest day of the year. Warm, dry weather, especially in London and the South East, spurred sales of summer ranges and barbecue foods.
Late footfall lift: Footfall in August was mixed, with the first half of the month impacted by riots and holidays abroad. However, the second half of the month saw a recovery as favourable weather and major events such as Taylor Swift's Eras Tour drew crowds.
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 sales volumes (+xx% YoY in August).
Stabilising conditions: The Bank of England cut interest rates in early August for the first time since March 2020, from 5.25% to 5%. It comes as the labour market continues to stabilise, with wage growth moderating, unemployment easing and vacancies cooling from recent highs (ONS).
Promotional activity: Prices continue to be put at the heart of retail spending decisions as households are yet to feel a sustained recovery in personal finances, while uncertainty remains over potential tax rises and higher energy bills ahead of the upcoming budget.
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UK Grocery Market Share
Source: Retail Economics, Kantar
