A surge in sales of fresh produce and other food drink was the driving force behind the retail boom this new year.

Supermarkets enjoyed their best January sales figures for three years, after like-for-like sales of fruit, vegetables, and organic food and drink grew by 3.1 per cent, compared with 0.2 per cent growth in 2006 and 0.5 per cent in 2005.

The figures published by the British Retail Consortium (BRC) and KPMG, also showed a 2.1 per cent increase in sales for the quarter ending in January, suggesting recent interest rate rises have not affected consumer spending.

Electrical goods also saw an increase, while household furniture and clothing saw a drop in sales on last year.

Kevin Hawkins, director general of the BRC, said: “Much of the growth has been driven by the grocery sector and discounting has been fairly widespread in several other categories.

“The comparatives from last year are weak and the November and January interest rate increases have yet to make themselves felt.”

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