Food sales in the past three months grew by 1.4% on a like-for-like basis, against weak comparatives from the previous year.

Overall food sales were up 3.9% for November, December and January, reflecting the severe impact of the snow at the end of 2009. Across the entire high street, like-for-like retail sales were up by just 0.8% in the three-month period.

“On the surface, this is the best sales growth since last March, but that's not the whole story,” said Stephen Robertson of the British Retail Consortium, which compiled the data.

“Comparisons are with a feeble, snow-hit performance a year ago. Growth this January was driven by a relatively short but strong burst of non-food buying early in the month. Clearance discounts and a last chance to beat the VAT rise got people buying things like furniture and electricals in the first few days.”

IGD chief executive Joanne Denney-Finch said: “January was always going to provide challenging trading conditions, as shoppers reassessed their budgets after Christmas. Not only will they have received credit card bills from their festive spending, they’ve also had to deal with several pressures on their income, such as higher petrol prices.

“Our latest ShopperTrack research shows people are responding to these financial strains by cutting down on treats, such as eating out. Economising on their weekly food and grocery shopping was seen as less of a priority. But with shoppers clearly feeling the pinch, both food manufacturers and retailers will be working hard throughout the year to demonstrate value.”

Read more
WH Smith next to blame snow for sales dip (26 January 2011)
Boots hails ‘robust’ retail performance (17 January 2011)
The Co-op blames big freeze for big slump in food sales (13 January 2011)