Non-food sales in UK grocery stores are projected to increase by 40% to £16.2bn in 2014, representing nearly 10p in every pound shoppers spend in supermarkets, according to grocery experts IGD. Currently worth £11.6bn, non-food sales within the grocery market have strongly outperformed the non-food retail market as a whole in 2009, increasing 6.4% from the previous year.

IGD’s latest report, UK Grocery Retail Outlook 2009 - Repositioning for growth, also reveals that the UK food and grocery market is currently worth £146.3bn, and is forecast to grow 20% to £175.9bn by 2014.

Joanne Denney-Finch, IGD Chief Executive said, "The food and grocery industry has demonstrated resilience during a period of economic uncertainty. Food and grocery retailers have been steadily investing in non-food, both in-store and online and will increasingly reap the rewards, prospering in a value-conscious and convenience-driven marketplace."

Gavin Rothwell, Senior Business Analyst at IGD added, “While retailers continue to strengthen their core food and grocery business, many are also broadening their non-food ranges beyond toys, DVDs and clothing with items as diverse as fitness equipment, dishwashers and bathroom suites. Others are expanding the services they offer such as banking, eye care and travel services - helping drive further growth."

The research also highlights convenience and online retailing as being among the key channels to watch. The convenience sector is set to continue to outperform the UK grocery market, projected to increase to £41.4bn in value from £30.3bn . The online grocery channel is expected to almost double over the next five years from £3.7bn to £7.2bn in 2014

NamNews - Wednesday 25th November 2009

 

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