Non-food sales in UK grocery stores are set to leap up 40% to £16.2bn by 2014, representing nearly 10p in every pound spent in supermarkets, according to IGD’s latest report – UK Grocery Retail Outlook 2009.
Currently worth £11.6bn, non-food sales within the grocery market have strongly outperformed the non-food retail market as a whole in 2009, IGD said.
The UK food and grocery market is currently worth £146.3bn. IGD forecasts that we will spend £175.9bn in grocery retail outlets in 2014 – an increase of 20%.
Joanne Denney-Finch, chief executive, IGD said: “The food and grocery industry has demonstrated resilience during a period of economic uncertainty. Food and grocery retailers have been steadily investing in non-food, both in-store and online and will increasingly reap the rewards, prospering in a value-conscious and convenience-driven marketplace.”
Gavin Rothwell, Senior Business Analyst, IGD said: “While retailers continue to strengthen their core food and grocery business, many are also broadening their non-food ranges beyond toys, DVDs and clothing with items as diverse as fitness equipment, dishwashers and bathroom suites. Others are expanding the services they offer such as banking, eye care and travel services – helping drive further growth.”
The research also highlighted convenience and online retailing as growth areas.
IGD said the convenience sector wpould continue to outperform the UK grocery market, projected to increase to £41.4bn in value from £30.3bn.
It predicted the online grocery channel would almost double over the next five years from £3.7bn to £7.2bn.
