In August, supermarket sales volumes increased significantly, driven chiefly by favourable weather conditions according to recent data.
- Supermarket food sales rose 1.8% in August, following a moderate increase in July, as reported by the Office for National Statistics (ONS).
- Year-on-year, food store sales saw their largest increase since July 2021, with a 0.6% rise attributed to weather influences.
- Online sales in food stores grew by 1.4%, although overall online spending remained stable compared to the prior year.
- Economic challenges persist for retailers, with calls for policy changes to support the sector amid rising operational costs.
In a notable boost for the UK supermarket sector, food sales volumes saw an uptick of 1.8% in August, building on a smaller rise of 0.3% in July. This growth was highlighted by the ONS, reflecting the largest year-on-year increase in food store sales of 0.6% since July 2021. Retailers have largely credited the favourable weather conditions for this uplift, enabling families and friends to engage in outdoor gatherings such as picnics and barbecues, thus driving demand for food, cosmetics, and fashion goods.
Meanwhile, the dynamics within the online retail space remained largely unchanged, with overall online spending remaining flat in August. However, a more detailed examination shows that food stores experienced a 1.4% increase in online sales compared to the previous year. This indicates a sustained consumer preference for purchasing groceries online despite the absence of growth in broader online retail categories.
Retail sales overall experienced a considerable rise, up by 1% in August, from a 0.7% increase in July, reaching their highest levels since July 2022. This positive trajectory offers some optimism amid ongoing economic pressures faced by consumers and businesses alike.
Kris Hamer, the British Retail Consortium’s director of insight, acknowledged the positive sales momentum in August, particularly in the context of summer. He commented on the broader impact of social events and preparations for holidays on retail sales. However, Hamer cautioned against complacency, noting the persistent high cost of living and anticipated energy bill increases which may temper consumer demand in the coming months.
Retailers continue to grapple with a challenging landscape marked by a disproportionate tax burden relative to other industries, which is stifling investment. Hamer emphasised the need for decisive governmental intervention, specifically advocating for a 20% Retail Rates Corrector to alleviate this imbalance, which he argues would stimulate economic growth and revitalise high streets across the country.
The August rise in supermarket sales signifies the complexities of retail growth amidst economic challenges, highlighting the need for strategic support.
