We're spending less on food

22 August 2014

"Mmmm Earlobe risotto! Yum!"
"Mmmm Earlobe risotto! Yum!"

Food shop spending dropped in July for the first time in a quarter of a century.

According to figures from the Office for National Statistics, a year-on-year fall of 1.3% was the first seen since records began back in January 1989.

The price wars have had some effect, as the report says that prolonged discounting was affecting overall sales.

It goes on to suggest that the big supermarkets have been upping their game against having their market share arses kicked by the likes of Aldi and Lidl.

The headline figure for retail sales showed a weaker than expected 0.1% growth month-on-month.

However, a three-month on three-month increase of 0.3% was the seventh consecutive improvement, the longest period of sustained growth by this measure since November 2007.

It's also quite good news for online shopping, as spending increased 11.2% in July on a year earlier but fell 1.9% compared to June.

Speaking some sense, and illuminating the caution, Ian Geddes, UK head of retail at Deloitte said: "Many consumers are yet to feel the benefits of the economic recovery and are reluctant to let go of their recessionary behaviours, particularly when shopping for food.

"Consumers continue to show a willingness to spend on non-food items, but are doing so selectively."

TOPICS:   Supermarket

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