Retail sales of food are continuing to outperform those of non-food items, according to the latest figures from the British Retail Consortium (BRC).
Overall UK retail sales values fell by 0.1% on a like-for-like basis compared with August 2008, when sales had fallen, hit by very wet weather.
Food sales growth edged up, but only slightly from July’s low.
BRC director general Stephen Robertson said: “The stronger figures of June and July haven’t been sustained. It’s clear the deceptively good sales growth of those months was due to summer sun and price cuts – not any major revival in how customers are feeling. What spending we now have is all about value and essentials.
“Most people are still very reluctant to spend on expensive household items – unless they’re sufficiently discounted.”
Helen Dickinson, head of retail at KPMG, added: “The timing of the bank holiday, which fell into August’s results for 2008 but not in 2009, did not help the overall figures.”
IGD chief executive Joanne Denney-Finch said: “Sales of food and drink in August were marginally better than July, despite inflation starting to cycle out of the system as we compare figures this year with steep rises in 2008.
“The summer has seen increased promotional activity in the grocery sector. Whether banking on the sunshine with barbecue pack deals or investing in revamped loyalty card schemes, grocers are competing fiercely to provide value for shoppers.
“Our latest consumer research shows that shoppers are ‘deal hungry’ with 23% preferring buy-one-get-one-free, and 17% opting for reduced-price offers, like ‘half-price’ or ‘25% off’.”
Joscelyne Hynard, senior analyst at the BRC, said: “Food sales growth was slightly stronger than in July, though increasingly dampened by lower food price inflation, particularly for fresh fruit, vegetables and meat.
“Sales varied with the weather: sunny days drove barbecue foods, prepared salads, dips and pâté, but cooler wet weather led a shift to soups, roasts and home baking.
“Beer, cider and sparkling wines were popular. Shoppers continued to look for value lines and promotions, but some also noted signs of trading up and treating.”
