According to figures from the British Retail Consortium (BRC), food sales were up 4.7% on the year in August, while shopper confidence remains low.
The increase was against a growth of 3.9% in August 2024, which was above the 12-month average growth of 3.3%.
UK total retail sales were up 3.1% on the year, against a growth of 1% in August 2024 and above the 12-month average growth of 2%.
Helen Dickinson, chief executive of the BRC, said: “Sunny weather and an interest rate cut helped August round off a solid summer of sales. Stronger growth in food and drink was largely down to rising prices, which rose over 4% in August, rather than increasing volumes.
“Despite a better summer, retailers approach the ‘golden quarter’ with caution. With the later-than-expected Budget falling just days before Black Friday, many are uneasy about how consumer confidence and spending could be impacted by tax rise speculation in the run-up to Christmas.
“Government needs to shore up both consumer and business confidence. An assurance that the business rates reforms will deliver a meaningful reduction for retail and hospitality would remove uncertainty, give businesses the confidence to invest in local communities and help limit the price rises which are worrying consumers.”
“Shopper confidence fell for the third consecutive month to -1, with many expecting food prices to climb even further.”
Sarah Bradbury, CEO of the Institute of Grocery Distribution (IGD), said: “As shoppers settle back into reality after the hottest summer on record, food price inflation rose sharply in line with IGD’s forecast, reaching 4.9% in July, driven by staples like beef, chocolate, and coffee.
“Shopper confidence fell for the third consecutive month to -1, with many expecting food prices to climb even further. The emotional weight of rising energy bills and fears of tax hikes in the Autumn Budget are adding to the strain, especially as unemployment ticks upward.
“Yet, there are glimmers of relief: interest rates have been cut again, and mortgage rates are easing, offering some financial respite. While volumes remain under pressure, financially resilient shoppers may remain more confident, even as they brace for a challenging winter.”
