June 28, 2022

Seafood retail sales in the UK decline due to inflation

Grocery research firm Kantar said chilled seafood sales in the UK grocery sector declined 11% to GBP 489.9 million (~US$ 601 million; GBP 1 = US$1.23) in the quarter ending 15 May, primarily because of record-high price inflation in the country, Fish Information & Services reported.

In the firm's recent Meat, Fish, and Poultry report, sales of battered seafood fell 20.9% during the quarter, while sales of breaded seafood dropped by 17.9%. Sales of smoked fish fell by 14.9%, shellfish down 13.9%, natural products down 10.9%, and added-value goods down 3.8%.

The overall chilled fish category saw a 6.7% increase in sales when compared to the same quarter two years prior.

Kantar said the significant sales declines can be attributed to both general grocery inflation and price increases in the seafood section. They said while the cost of fish hasn't increased as quickly as the cost of primary meat (up 3.1% during the quarter), the rate of growth is still faster than it has been for some time.

According to a press release from Kantar, grocery prices in the UK increased 8.3% over the previous month to reach their highest level since April 2009.

As a result, overall supermarket sales decreased by 1.9% for the three months that ended on June 12, while sales increased in the most recent month compared to the same period in 2021 by 0.4%

IGD, a grocery industry trade group, said food inflation could reach 15% this summer, the highest level in more than 20 years, and continue through the middle of next year.

IGD said the grocery categories most likely to suffer are meat, cereals, dairy, fruit, and vegetables.

-      Fish Information & Services