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Food sales up thanks to bad weather, says BRC 10/02/10

Food sales were up in January despite it being the worst start to the year for total UK retail sales growth in 15 years, according to British Retail Consortium (BRC) data out today.

Due to bad weather, total retail sales values fell 0.7% on a like-for-like basis from January 2009, when sales had risen 1.1%. On a total basis, sales rose 1.2% against a 3.2% increase in January 2009.

The snow boosted food sales in the first week of January as people stocked up on essentials, but hit non-food, especially discretionary items. When the weather improved, food sales slowed but non-food staged a partial recovery.

Over the month, food, clothing and footwear showed gains on a year ago, but homewares and furniture showed declines.

Helen Dickinson, head of retail at KPMG, said: "It was a very mixed performance in January which was impacted by a number of factors. The snow in the early part of the month caused consumers to stock up on food related items as travelling the country became treacherous while non-food suffered.

"As the month progressed, clothing and footwear picked up considerably but other non-food sectors continued to show weakness."

Joanne Denney-Finch, chief executive at IGD, said: "Supermarkets and suppliers kept the shelves full, demonstrating the resilience of the food industry and its ability to rise to the challenge of adverse weather conditions.

"As the economy creeps out of recession, IGD consumer research indicates that price has risen in importance over the last 12 months, with 47% saying it is now their main priority when choosing grocery products - up from 36% a year ago.

"However, shoppers still want ‘value for values', with support continuing to grow for Fairtrade, local foods, and high animal welfare standards."

Frozen and tinned food, store cupboard essentials and comfort food such as soups, pies, pizzas, puddings and biscuits all sold well. Growth then slowed markedly again when the weather returned to normal.

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