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    UK’s non-food sales set to rise 40 per cent in five years: IGD


    According to international food and grocery expert Institute of Grocery Distribution (IGD), non-food sales in UK grocery stores are projected to increase by 40 per cent to £16.2bn in 2014, representing nearly 10p in every pound they spend in supermarkets.

    Currently worth £11.6bn, non-food sales within the grocery market have strongly outperformed the non-food retail market as a whole in 2009.

    IGD’s latest report UK Grocery Retail Outlook 2009 – Repositioning for growth reveals that the UK food and grocery market is currently worth £146.3bn. IGD forecasts that we will spend £175.9bn in grocery retail outlets in 2014 – an increase of 20 per cent.

    Joanne Denney-Finch, chief executive, IGD says, “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, IGD comments, “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 will almost double over the next five years from £3.7bn to £7.2bn in 2014.

    — IndiaRetailing Bureau