Mixed picture for food and drink sales as Christmas approaches

Total UK retail sales were up 2.6% in the three months to November compared with the same period last year, but food and drink sales did much better, rising by 7.6%.

Even so, the British Retail Consortium (BRC) and accountants KPMG warned that the high rate of inflation meant that although sales might have increased in value, they might not have increased in volume.

Sarah Bradbury, chief executive of the IGD, pointed out that while there was year-on-year growth, food and drink sales fell from last month.

She said: “For a second month in a row, food and drink sales were down in November compared to October. The comparatives to November 2022 paint a slightly better picture with an increase in sales, although this was offset by a marginal decline in volume.

“Footfall for the month was down compared to November 2022, a likely result of storms Ciarán and Debi bringing wetter and more windy weather across the country.

Helen Dickinson, chief executive of the BRC, said: “Retailers are banking on a last-minute flurry of festive frivolity in December and will continue working hard to deliver an affordable Christmas for customers so everyone can enjoy some Christmas cheer.

“Looking ahead to 2024, retailers will have to shoulder many new cost pressures, including a rise to business rates, as well as costs from other new regulations.

“These, combined with the biggest rise on record to the National Living Wage, will mean retailers will have less capital to invest in lowering prices for their customers.”

Paul Martin, UK head of retail at KPMG, said: “With the clock ticking down to Christmas, sales growth in November remained weak at 2.7%, despite a big push from retailers around Black Friday deals.

“Food and drink, health, personal care and beauty categories continued to drive growth.”