The latest figures released by international food and grocery analyst IGD have revealed that UK consumers will spend some £182.7bn (€214.7bn) in grocery retail outlets by 2015, at an average annual growth of 3.9 per cent.
According to IGD's 'UK grocery Retail Outlook: Opportunities beyond 2010' report, the UK food and grocery market will climb over the next five years from its current level of £150.8bn, which represents 52.7 per cent of total retail sales.
In the report, IGD forecasts that the UK convenience sector, which is currently valued at £32.1bn, will outperform the grocery market and is projected to increase sales by 5.8 per cent year-on-year to £42.6bn in 2015.
Online grocery retailing is set to double in value from £4.8bn to £9.5bn, due to technological enhancements, website improvements and better delivery/collection methods, as well as stronger consumer confidence, IGD said.
'Many UK retailers have announced major development plans in areas such as convenience and online – all of which are helping drive growth,' explained Gavin Rothwell, UK research manager at IGD. 'Multi-format and multi-channel strategies are gaining traction and scale as retailers seek to reach shoppers in other ways.'
IGD chief executive Joanne Denney-Finch noted that the UK food and grocery industry had remained resilient over the past year despite a tough trading environment.
'Companies have responded quickly to shifting shopper trends and have adapted their business models accordingly to win the contest for value and convenience,' she said. 'The road ahead remains uncertain, but those businesses that keep up with the pace of change will continue to reap the rewards and prosper.'
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