Non-food sales from grocers are expected to increase by 40% to £16.2bn in 2014, representing nearly 10p in every pound spent in supermarkets.
According to grocery trade body IGD, currently, non-food sales in the grocery market are worth £11.6bn.
IGD’s report, “UK Grocery Retail Outlook 2009: Repositioning for Growth”, also forecasts shoppers will spend £175.9bn in total in grocery outlets in 2014 – an increase of 20%.
The growth will pile further pressure on traditional high street chains such as WH Smith, Waterstone’s, PCWorld and high street fashion retailers. Their sales have already been hit by grocers’ moves into non-food.
IGD chief executive Joanne Denney-Finch said: “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.”
IGD senior business analyst Gavin Rothwell said: “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 report also found the convenience sector is projected to increase to £41.4bn in value from £30.3bn. And the online grocery channel will almost double over the next five years from £3.7bn to £7.2bn in 2014.