Sales at UK grocery stores increased 5.8% year-over-year during the latest three-month period ending August 9, 2008, with food inflation continuing to drive the sector’s growth. 

Sales were strongest at large, out-of-town supermarkets, where 7% year-over-year growth was recorded.  In contrast, sales growth at large, centrally-located grocery stores slowed to just 1% year-over-year.

Food retailers who trade on value and price propositions also performed well.  Iceland saw 13% year-over-year sales growth, while Morrisons grew by 9.1% over the same three-month period last year. 

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