Solid Christmas food sales but inflation fears loom in 2022

In the last quarter of 2021 food sales increase 0.4%, against an annual figure of 3.1% compared with 2020.

Food sales in December alone were also slightly up on last year.

However, observers noted that despite the modest growth revealed by the monitor it was likely that sales performance in 2022 would be hindered by inflation.

Susan Barratt, chief executive of the Institute of Grocery Distribution (IGD), said:  “Food and drinks sales delivered a strong performance in December 2021 and were back in year-on-year growth.

“This is particularly impressive considering the exceptionally strong sales recorded in December 2020 and indicates that many shoppers took advantage of being able to celebrate Christmas this year with family and friends.

“However, IGD’s Shopper Confidence Index shows that December was a month of two halves.

“Overall confidence remained unchanged from November, but the index declined at the start of the month as further restrictions were announced to curb the rise of Omicron.

“However, as most people were able to celebrate with family and friends once again, shopper confidence increased significantly around the festive break.

“Looking ahead and amid inflation reaching a 10-year high in December, the rising cost of living looks set to shape shopper sentiment in 2022 and our ShopperVista data shows that 86% of shoppers expect food to get more expensive in the year ahead, the highest level since January 2016.”