Food & Drink sector performance – October 2022
09 November 2022IGD’s CEO, Susan Barratt, contributes to the BRC’s Retail Sales Monitor, providing insight on UK food and drink sales.
IGD’s CEO, Susan Barratt, contributes to the BRC’s Retail Sales Monitor, providing insight on UK food and drink sales.
October’s food and drink sales were driven by inflation with volume sales over the period notably negative. Set against a turbulent backdrop with much uncertainty in both politics and the economy, shoppers are feeling cautious and are holding back their spending. The food industry will hope that upcoming events like the World Cup and Christmas will encourage shoppers to loosen the purse strings.
In this environment, it’s little surprise that our Shopper Confidence Index remains historically low as shoppers contend with increased food prices, lower (real) wages and rising energy bills. More shoppers than ever are switching their focus to saving money on groceries – up to 47% compared to 26% in Oct ’21. Other tactics to save money include reducing spend on eating out with 70% doing this compared to 63% in May ’22 and more shoppers eating lower quality food (24% versus 17% in July ’22).
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