Retail sales fell for the second month in succession in November, but the food and drink sector continued to perform well, according to new figures out today.
According to the British Retail Consortium (BRC)-KPMG retail sales monitor, values fell 2.6% like-for-like from November 2007, after an annual drop in total sales in October. In November, total sales dropped by 0.4%.
Yet competitive promotions and discounting have meant that groceries are still outperforming the market as a whole, said Joanne Denney-Finch from IGD.
She commented: “Every national newspaper has carried competitive supermarket promotions over the last few weeks as retailers jostle to attract festive shoppers into stores.
“The major retailers have hardly had time to draw breath between Halloween and Bonfire Night campaigns and the launch of Christmas-focused activity.”
Additionally, the early VAT cut and other promotions mean shoppers are “scrutinising value”, Denney-Finch added.
The figures come after the Office for National Statistics reported food sales volumes growth dipped 0.7% in October.
Commenting on the sector as a whole, BRC director general Stephen Robertson said these are clearly “tough times” and retailers are hoping shoppers arrive to do their Christmas shopping.
Last week, the BRC said annual food price inflation has dropped to 7.1%, largely due to price cuts in stores.
