Deliveroo has cut its annual sales forecast as the cost of living crisis continues. The food delivery group has revealed a drop in demand for takeaways as customers cut back on spending.
According to the firm, growth in total sales by gross transaction value (GTV) plunged from 12% in the first quarter to 2% in the three months to the end of June. "This is a slowdown in GTV value which management believes reflects the impact of increased consumer headwinds," the company said in a trading update on Monday.
In the UK, sales growth dropped from 12% to 4% quarter-on-quarter. "As the cost-of-living crisis bites with inflation close to double digits, consumer discretionary spending on services like Deliveroo are in the firing line as households look for ways to cut back on spending," Victoria Scholar, the head of investment at Interactive Investor, told the Guardian.
