16 July 2008, 13:48 PM
  • Although UK retail like-for-like sales values fell by 0.4% last month compared to June 2007, food and drink has once again shown its strength and proved the only sector to experience significant growth.

The encouraging figures were revealed as the British Retail Consortium (BRC) released the findings of its monthly Retail Sales Monitor with KPMG. Overall, despite positive May results, sales have now been lower than a year ago in three of the past four months, the worst run since summer 2005. However, once again the food and drink sector performed well.

Commenting on these figures, Joanne Denney-Finch, chief executive at IGD, says, “Despite widespread economic pessimism, collectively UK grocery stores are performing robustly. Sales in June benefited from drier weather, midsummer seasonal events such as Euro 2008, festivals and outdoor eating. “

However, she explains that, “Harder times often lead to consumers changing their shopping habits and retailers have been competing hard to retain existing customers and attract new ones. Without doubt, the fight is on for the high ground on value for money and retailers are battling to create summer excitement in store.”

Stephen Robertson, director general of the BRC, concludes, “Retailers are doing all they can to reassure customers, offering some of the strongest discounts and promotions in decades and keeping a lid on inflation. Surely Government should also be helping hard-pressed customers by not piling-on new tax burdens and resisting its instinct for costly new business regulation which ultimately pushes up prices.”