Soaring prices in supermarkets has fuelled a jump in UK food sales in the past month, as volumes in store remained under “sustained pressure” and consumer confidence continued to drop.
Food sales increased 4.1% in the year to June 2025, more than twice the 1.8% growth seen in June 2024 and up from the 3.6% rise recorded in May. Total UK retail sales increased 3.1%, with non-food sales growing 2.2%, according to the latest statistics released this morning (15 July) by the BRC and KPMG.
Despite retail sales “heating up” in June, and the good performance in both food and non-food products, BRC chief executive Helen Dickinson admitted food sales’ growth was “in part” driven by inflation, which she said had “risen steadily” over the course of the year.
The latest supermarket data from Kantar last month revealed inflation in supermarkets had ramped up to 4.7% in the four weeks to 15 June, its highest level in 16 months, as volumes slipped 0.4%.
Sarah Bradbury, chief executive of the Institute of Grocery Distribution, added that shopper confidence had fallen back in June, with a fifth (20%) of consumers now expecting food to become “much” more expensive.
“Escalating global tension and economic pressures left shoppers feeling uncertain in the year ahead,” she said.
“Value sales growth continues to be predominantly driven by inflation, with volumes under sustained pressure.
“However, the arrival of new summer ranges and improved weather presents retailers with opportunities to tap into more consumer occasions, particularly amongst higher income shoppers who remain focused on quality.”
While the headline sales growth was positive news for retailers, Dickinson warned that many were waiting anxiously for details of business rates reform.
“If the government includes shops within its new higher rates threshold, then many retailers will be forced to rethink their investment plans,” she added.
“The closure of larger stores would harm the local communities they support, costing jobs and reducing footfall in the area they serve. If government wants to improve high streets and help local communities, it must ensure that no shop pays more under their new rates reforms.”
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