UK food retail growth will slow down sharply in the short term-IGD Reuters

London (Reuters)-The UK retail food and grocery market will experience unprecedented growth of 8.5% in 2020, slowing to 1.7% and 0.9% in 2021 and 2022, respectively, as shoppers frugality and the dining out industry resumes Sales, industry researcher IGD said Wednesday.

It said that after a sharp decline in growth, there will be a period of mild recovery, when the market will grow by 8.1% between 2021 and 2026, reaching 229.1 billion pounds (316.7 billion U.S. dollars).

IGD predicts that new channels and opportunities (such as rapid business) created by rising employment levels, increased consumer confidence, economic recovery, and the disruption of COVID-19 will drive the recovery.

“We expect a sharp decline in the short term; many households will face increasing pressure, which makes shoppers more value-conscious. The reopening of the hotel industry…will also shift some of the spending away from the retail industry. In the short term,” Said Simon Wainwright, Director of Global Insights at IGD.

“That said, with the arrival of the’K-type recovery’, the industry has the opportunity to reach out to many shoppers who have accumulated savings during the pandemic and contributed to an estimated £150 billion piggy bank, by focusing on quality and Convenience.”

Wainwright pointed out that in the long run, the size of the UK grocery industry will still be higher than IGD’s pre-pandemic forecast. This is mainly due to the increase in the level of stores benefiting from family work in the suburbs, the adoption of digital technology in stores will change the way and where people shop, and Fewer outdoor restaurants.

IGD predicts that discounts will be the fastest-growing channel in the five years to 2026, increasing by 23.8% to 34.4 billion pounds, driven by new stores.

It predicts that online business will grow by 21.4% to 26.9 billion pounds, driven by new capacity and new fast commerce sub-channels.

Researchers expect convenience channels to grow by 12.5% ​​to 50 billion pounds.

The supermarket channel is expected to increase by 0.9% to GBP 91.8 billion, while the hypermarket channel is expected to decrease by 2.3% to GBP 16 billion.

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