Increased demand for strawberries and cider boosts grocery sales significantly
**Boost in UK Supermarket Sales Amidst Economic Challenges**
A surge in UK supermarket sales has been observed in recent weeks, with growth reaching 5.8% in the four weeks ending July 12, 2025, compared to 3.8% in June. This uptick is primarily attributed to the warm weather and key sporting events such as Wimbledon and the Women's Euros [1][4].
The heatwaves have significantly impacted sales, driving a 135% increase in cooling products like air conditioners, fans, and air treatments, and boosting demand for summer essentials such as soft drinks, frozen foods (especially ice cream), cider, and fresh cream [1]. Strawberries have experienced a particularly notable surge, with a 18.5% increase in value and a 15.3% rise in unit sales [1].
However, retailers are grappling with rising costs and consumer inflation. The British Retail Consortium reports that retailers are facing an additional £7 billion in costs, which could impact future sales [2]. Inflation has been driven by the prices of fresh staples, including butter, red meat, and chocolate [1].
Consumers are facing budgetary pressures, with analysts noting a decline in consumer confidence that could affect future spending habits [2]. Despite these challenges, shoppers have continued to manage their budgets carefully, with retailers focusing on value-for-money campaigns and price cuts via member loyalty schemes.
Online sales have seen significant growth, with values rising by 2.3% over June and 4.5% year-over-year, suggesting that consumers are increasingly preferring online platforms [3]. Worldpanel estimates that £275 could be added to grocery bills by the end of this year due to inflation at 5.2% in July [5].
Just under two thirds of households express concern about the cost of their grocery shopping [5], and the summer of sport has also contributed to the surge in sales [6]. Own label products, which are often cheaper, continue to be popular choices among shoppers. In the four-week period, shoppers spent £132m on nearly 60m packs of strawberries [1].
Mike Watkins, analyst at NIQ, predicts increased price competition among retailers, offering shoppers more opportunities to save by comparing prices and shopping around [7]. The current trend in UK supermarket sales is marked by a significant increase, driven by recent heatwaves and major sporting events. However, the outlook for the next six weeks depends on the cost of eating out and the rate of inflation, which has been higher than expected for food [8].
Sources: [1] Kantar Worldpanel [2] British Retail Consortium [3] Office for National Statistics [4] NielsenIQ [5] YouGov [6] NielsenIQ [7] Mike Watkins, analyst at NIQ [8] Mike Watkins, analyst at NIQ
- Amidst the economic challenges in the UK, there has been a notable growth in personal-finance interests, as consumers strive to manage their income and cut expenses.
- The surge in food-and-drink expenses, driven by the supermarket sales boost, has led to concerns about lifestyle affordability for many households.
- Owing to the increased costs of food and rising inflation, there has been an increased focus on shopping strategies that prioritize value-for-money, such as choosing store-brand products, or utilizing online platforms for price comparison.
