Drinks and food boost spending

Published: 16 April, 2009

Overall retail spending for March was boosted by purchase of drinks, food and clothing products, the latest data from the British Retail Consortium reveals.

Total sales climbed 0.6% from a year earlier. Like-for-like sales dropped by 1.2% from the level of 2008, while non-food, non-store sales jumped 10.8%.

By contrast to the growth in food and drink sales, higher priced items such as furniture fell to the worst levels for the last nine years.

Joanne Denney-Finch, chief executive of grocery research experts IGD, said: "Easter was early in 2008, making direct comparisons with last March slightly unfair. However, grocery retailers have maintained robust growth - again suggesting the sector is the bedrock of consumer spending, filling the void left by victims of the recession. Their absence, particularly apparent at this time of year, provides opportunities to drive sales of Easter eggs and other seasonal confectionery products.

"Inflation in food has yet to drop off in the way that some have predicted. Supermarkets have adapted their offers quickly to provide outstanding value, helping shoppers to manage some of the effects of inflation themselves, while keeping volumes positive."

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