Food sales to reach £20.6bn over Christmas: IGD

IGD forecasted a 1.2% growth for the UK grocery market during the holiday season, representing a “strong result for manufacturers and retailers​”.

Online shopping would also see a boost of 9.3%, set to generate £1.2bn in sales. This was boosted by a greater degree of choice offered to consumers, thanks to the launch of Amazon Go and Aldo Online.

Joanne Denney-Finch, IGD chief executive, predicted discount retailers will enjoy growth of 6.2%, seeing their sales reach £2bn.

“This would be another good result, although with a stronger proposition from the leading supermarkets on ranging, price and the in-store experience, we don’t think the discounters will grow by quite as much as this time last year,” ​said Denney-Finch

‘Competition intense as ever’​

“Competition is set to be as intense as ever and not only on price. Those retailers and suppliers who combine to offer excellent value plus a compelling in-store experience will capitalise on the strong emotional connection between food, drink and Christmas.”​

It is the second year in a row that IGD has predicted gradual growth in sales during the Christmas period.

Last year, the organisation predicted shoppers would spend £20.3bn during the festive season, which was 1.4% higher than the £20bn spent in 2014.

A trend of “savvy shoppers” ​continues into December, with many consumers opting using vouchers and store loyalty schemes to reduce the cost of their shopping.

‘Splash out on food’​

Denney-Finch said: “For many shoppers (54%), Christmas is a time to splash out on food and groceries, yet the savvy shopping habits established over many years still apply during the festive period.​

“Almost half (46%) collect coupon points on their loyalty cards to use at Christmas, representing a clear opportunity for retailers to lock in purchases.”​

Lower prices of food had also boosted sales, claimed Denney-Finch.

However, food prices could rise in the wake of the UK’s departure from the EU, warned food a range of food and drink organisations​.

The increases would be caused by the industry losing access to non-UK EU workers, warned 32 food and drink organisations – including the Food and Drink Federation and the British Retail Consortium.