We arm you with all the numbers you need to tackle the week ahead.
Fashion retail to be hit hardest by consumer cutbacks
Fashion retail is expected to take the biggest hit from consumer cutbacks in the UK this year, with spend set to fall by 6.5% to £41.68bn by the end of 2023.
According to forecasts from GlobalData, prepared in partnership with VoucherCodes.co.uk, total retail spending is expected to rise marginally from £319.79bn in 2022 to £319.82bn. However, this rise will primarily be a result of inflation rather than an increase in sales volume, as consumers battle with the cost of living.
In fact, VoucherCodes.co.uk’s ‘2023 Spending and Saving Report’ reveals 73% of consumers plan to cut back on retail spending this year, and almost all retail categories are expected to face declining sales.
The sportswear category is forecast to see the next largest decline in sales in 2023, down 4.4% to £11.77bn. Technology retailers are due to see spend fall 3.1% to £20.82bn.
In the home and garden category sales are expected to drop by 2.9% to £37.43bn, while health and beauty is to decline 2% to £23.71bn.
However, grocery spend is predicted to buck the trend, with sales to rise by 3.3%, or almost £6bn, to £176.6bn. Surprisingly, gifts and flowers are also set to grow in sales, up 0.8% to £7.1bn.
Source: GlobalData/VoucherCodes.co.uk
Grocery price inflation passes 17% for the first time
Grocery price inflation has reached the highest level since Kantar began recording it, hitting the 17.1% mark for the first time ever in the four weeks to 19 February.
Last month marked a full year since monthly grocery inflation jumped from about 4%. It means if households continue to buy the same groceries and products they will be spending an additional £811 on their average annual bill.
Supermarket own labels continue to do well as a result, with sales up 13.2% this month, well ahead of branded products which increased by a more modest 4.6%.
Consumers are increasingly shifting spend to the discounters too, with Aldi pushing its market share up to 9.4%. It remains the fastest growing supermarket, with sales up 26.7%. Lidl has also seen a big boost to sales, up 25.4% over the period to give it a market share of 7.1%.
The UK’s biggest three supermarkets increased sales by a more modest amount, with Tesco (up 6.6%), Sainsbury’s (6.2%) and Asda (5.9%). All dropped market share marginally over the period compared to last year. Tesco’s market share now stands at 27.3% (down from 27.7% in February 2022), Sainsbury’s is 15.2% (down from 15.5%) and Asda’s is 14.3% (down from 14.6%).
Morrisons saw its sales slip by 0.9% taking its market share down to 9%
Source: Kantar