Food stores among leaders in UK’s return to retail growth

This was stronger than overall retail sales volumes (up 0.4%) but still 4.1% below pre-coronavirus food store volumes in February 2020.

Kelly Askew, Accenture’s retail strategy and consulting lead in the UK and Ireland, said: “Although the summer weather may not have improved much from July to August, the fortunes of UK retailers did.

“Shoppers made the most of the last Bank Holiday of the year by increasing their spending, particularly on food.

“Businesses will be hoping this optimism will continue as we head towards Christmas. Despite this week’s unexpected fall in inflation, shoppers may still be looking at cutbacks this festive season as the cost of living continues to bite.”

Phil Monkhouse, head of sales at global financial services firm Ebury, was optimistic about the next few months.

He said that the latest figures “will drive further confidence that the worst of the economic gloom may be past, following the positive inflation print and the Bank of England holding the base rate steady for the first time in nearly two years.”

Oliver Vernon-Harcourt, head of retail at Deloitte, agreed but added a note of caution. He said: “The macroeconomic situation continues to improve and consumers are more optimistic.

“However, the high price of essentials due to persistent food inflation remains a heavy weight on consumer spending.”