UK Food & Grocery Sector Report summary
August 2024
Period covered: Period covered: 30 June – 27 July 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 July, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted). Key factors impacted this performance:
Summer of sport: The combination of England reaching the Euro 2024 football final, Wimbledon and the start of the Paris Olympics supported grocery spending in July, as households stocked up on party essentials, drinks and snacks to watch the events unfold.
Warm weather: July's weather was mixed, with below-average temperatures across the UK for the first two weeks. However, the latter part of July saw a shift, with the hottest day of the year recorded on July 19th at 31.9°C in London, followed by another peak of 32°C on July 30th. Warmer temperatures spurred sales of summer ranges, including BBQ foods, providing a seasonal lift.
Stable inflation: Lower 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.
Improving finances: Importantly, earnings growth is now outpacing inflation, supporting a recovery in discretionary incomes among typical households.
Promotional activity: Despite growing real wages, households remain cautious, and willing to shop around for deals. To drive store visits and capture share, retailers continue to lean into promotions, with consumer spending on promotions up xx% YoY in July (Kantar).
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Online grocery sales time series
Source: ONS
