The British Retail Consortium (BRC) observed an increase in food sales over the month of June, attributing the “strong” sales in part to a rise in food inflation.
Over the five weeks from 1st June to 5th July, UK total retail sales increased by 3.1% year-on-year in June, against a decline of 0.2% in June 2024.
Food sales were up by 4.1% year on year in June, against a growth of 1.8% in June 2024.
Helen Dickinson, BRC chief executive, said: “Retail sales heated up in June, with both food and non-food performing well. Food sales remained strong, though this was in-part driven by food inflation, which has risen steadily over the course of the year.
“The outlook is not all bright and sunny: retailers are watching Government closely for details of the upcoming business rates reform. If the Government includes shops within its new higher rates threshold, then many retailers will be forced to rethink their investment plans.
“The closure of larger stores would harm the local communities they support, costing jobs and reducing footfall in the area they serve. If Government wants to improve high streets and help local communities, they must ensure that no shop pays more under their new rates reforms.”
“Value sales growth continues to be predominately driven by inflation with volumes under sustained pressure.”
Sarah Bradbury, CEO of the Institute of Grocery Distribution, said: “Shopper confidence fell back this month but stayed marginally above zero, landing at just one. Escalating global tension and economic pressures left shoppers feeling uncertain in the year ahead. Notably, the number of shoppers expecting food prices to get much more expensive rose from 14% to 20%, reflecting renewed inflation concerns.
“Value sales growth continues to be predominately driven by inflation with volumes under sustained pressure. However, the arrival of new summer ranges and improved weather presents retailers with opportunities to tap into more consumer occasions, particularly amongst higher income shoppers who remain focused on quality.”
