Robust Wages, Discounts Drive Sales Despite Online Decline
- Retail sales grew by 2.9% in August compared to the same month last year
- Growth rate slowed down from 6.7% in March 2019
- Increase of 0.6% in quantity bought in three months to August 2019
- Non-store retailing was the main contributor to the increase
- Online sales fell to 19.7% in August from 19.9% in July
- Wage growth, muted inflation, and better weather helped boost sales
- Deep discounts on summer clothing attracted shoppers
Retail sales experienced a ‘modest’ growth of 2.9% in August compared to the same month last year, according to the Office for National Statistics (ONS). This growth rate is slower than the 2.6% recorded in July and represents a slowdown from the peak of 6.7% in March 2019. In the three months leading up to August, there was a 0.6% increase in the quantity bought compared to the previous three months, with non-store retailing being the primary driver of this rise. Online sales as a proportion of all retailing fell to 19.7% in August from 19.9% in July. Despite negative sentiment within the retail sector, PwC’s consumer markets leader Lisa Hooker notes that robust wage growth, muted inflation, and improved weather conditions contributed to this growth. Additionally, deep discounts on summer clothing attracted shoppers seeking last-minute deals, making fashion one of the few categories to outperform.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about retail sales growth, citing sources such as the Office for National Statistics (ONS) and includes expert commentary from Lisa Hooker, consumer markets leader at PwC. It presents factual data and analysis without any clear signs of sensationalism or opinion masquerading as fact.
Noise Level: 4
Noise Justification: The article provides relevant information about retail sales growth and offers insights from an industry expert, but it could benefit from more in-depth analysis or discussion of potential factors impacting the numbers.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses retail sales growth and its impact on the retail sector, which can affect companies’ financial performance and stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
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