UK Grocery Sales Growth Slows in June as Wet Weather Weighs, says NIQ

• Sales growth at British supermarkets slowed in June, reflecting wet weather, strength in sales last year and lower food inflation. Market researcher NIQ said sales at UK supermarkets rose 1.1% in the four weeks to June 15 year-on-year (YoY), versus growth of 3.3% in its May report and 12.1% in the same period last year when Britain enjoyed an early June heatwave.
• This time last year, UK food inflation peaked at just 14.6%. It was 3.2% in May this year, according to NIQ. Overall British retail sales also softened this month after a recovery in May, and stores expect another drop next month, a survey from the Confederation of British Industry showed on Wednesday.
• NIQ said the wet weather meant shoppers were more inclined to shop for groceries online rather than in stores. In the four weeks, in-store sales fell 0.9%, while online sales increased 3.7%, boosting the online channel's share of the grocery market to 12.6%, up from 12.2% a year ago
• The market researcher highlighted strong sales of warming foods, with gravy and stock sales up 28% and soup sales up 21%. "We remain hopeful that current warm weather and England’s success at the Euros (soccer championship) may boost sales of drinks and snacks," Mike Watkins, NIQ’s UK head of retailer and business insight, said.

(Source: Reuters)