The growth of non-food sales through the major grocery and health and beauty retailers was almost double that of grocery sales in the second quarter of 2002 compared to the same period a year ago.
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Information Resources, Bracknell, today [Monday] announced that while non-food grew by almost 6%, grocery sales were up by just over 3%.
Although overall growth has slowed to just over 4%, the early Easter this year has meant that sales growth for the second quarter is bound to be lower. The fact that all but one sector are all still showing growth despite this is positive news for the industry. A combination of events including the Queens Golden Jubilee and the World Cup appear to have boosted sales throughout June.
Trends by sector
Growth in the chilled sector continues to be driven by ready meals which experienced a 22% increase in the last quarter. While bacon and sausages were expected to do well due to the early morning World Cup kick-offs, it was fresh soups that achieved double digit growth, aided by the unseasonably cooler weather.
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By GlobalDataBeers, wines and spirits was another category predicted to perform well over the Jubilee and World Cup period. However, growth has slowed due to the continuing decline of vermouths and aperitifs and cider and perry. Other alcoholic beverages including alcopops have continued to achieve over 50% growth for both the whole year and the quarter, mainly due to continued promotion and innovation, although this too appears to be slowing.
Produce has been the only sector not to show growth in the last quarter, with last year’s inflated prices caused by poor weather conditions potentially the main culprit. Prices for potatoes, fresh fruit and vegetables have all fallen this year with vegetables and salad vegetables both experiencing a value decline in this period.
Reduced growth in the ambient sector was driven by an 11% decline in confectionery sales, unsurprising given that the same quarter last year included Easter. Breakfast cereals performed well aided by some successful World Cup promotions. Tea and biscuits also showed good growth in the last three months.
Despite a good quarter at the beginning of 2002, the colder weather has dampened sales of ice cream and desserts in the frozen foods sector. Frozen vegetables also appear to have been affected by the same problems as their fresh counterparts.
Electrical items have driven growth within non-food, while housewares and greeting cards also performed well. Lottery sales continued to decline despite the ‘Lotto’ relaunch.
