10 August 2007, 17:50 PM
  • Growth in the grocery sector has slowed down further as interest rates increase and wet weather continues to dampen consumer spirits.

Mike Watkins, senior manager retailer services at Nielsen comments, “June/July was always going to be a tough period set against a backdrop of the strong trading environment enjoyed in 2006 where the World Cup and last summer’s hot weather buoyed up sales. Moreover, the interest rate rises are hitting consumers’ pockets and the dire weather is doing nothing to help the situation.”
He continues, “In this climate retailers are becoming increasingly more dependent on new store openings to drive year on year sales growths. On a tactical level, Nielsen can also report a significant increase in the amount sold on promotion with grocery retailers using offers and deep price cuts to drive consumers in store and bolster business.”