The British Retail Consortium (BRC) has reported that it expects improved shopper confidence following the recent General Election. The organization attributes a decline in food sales to “unseasonable, cool weather”.
According to the BRC, food sales increased by 1.1% over the three months to June, which is lower than the growth of 9.8% seen over the same period in 2023. This growth was below the 12-month average of 5.5%.
Retail sales, on the other hand, were reported to have performed poorly in June, with a decrease of 0.2% compared to the previous year. This is in contrast to the growth of 4.9% observed in June 2023, with the decline in sales being attributed to the cooler weather.
Sarah Bradbury, CEO of the Institute of Grocery Distribution (IGD), noted that despite the unseasonable weather in June, the grocery retail market experienced both value and volume growth. She highlighted that there was an improvement in performance in the final week of June, coinciding with a brief heatwave across the UK.
Looking ahead, Bradbury mentioned that the election campaign did not impact shopper confidence in June. However, she anticipated a boost in shopper confidence following the election, based on previous patterns observed after General Elections.
Helen Dickinson OBE, chief executive of BRC, expressed hope that as the summer social season progresses and the weather improves, sales will see an upward trend. She emphasized the importance of the retail industry to the nation’s economy, highlighting its role as a significant source of employment and investment.
Dickinson also mentioned the industry’s readiness to collaborate with the new Government to align with Labour’s policy goals. She stressed that through its scale and reach, the retail sector could make a significant contribution to achieving these goals.
