Food sales level off in June

Danny Morgan
Posted: Wednesday, July 14, 2010 10:14 am

Food sales level off in June

Food and drink sales levelled off in June despite a boost from the World Cup

New figures have shown that food sales in May rose just 0.1 percent according to the latest British Retail Consortium-KPMG Retail Sales Monitor.

The figures from the British Retail Consortium (BRC) also show that sales across all sectors on a like-for-like basis were up 1.2 percent compared June 2009, while total sales had increased 3.4 percent.

The World Cup had helped to increase sales, but this was countered by poor sales from other weeks during June says IGD chief executive Joanne Denney-Finch.

“Despite a boost from the World Cup and some hot weather, the better weeks for food and drink sales in June were cancelled out by the poorer ones, leaving the month’s sales growth broadly in line with May,”

An early England exit had been a concern for retailers and pubs alike during the World Cup but, even though they reached the knockout rounds, the defeat at the hands of Germany affected food and drink sales.

“England’s matches during the World Cup prompted major uplifts, but the exit from the competition slowed food and drink sales growth in the last week of the month.”

“Limited inflation in most grocery categories, pervasive media coverage of the government’s austerity agenda and the likelihood of further economic uncertainty all add up to nervous shoppers and a challenging environment in which to grow sales.”