Fourth Consecutive Month of Growth and Shifting Consumer Habits

  • UK retail sales increase for fourth consecutive month
  • August saw a 0.8% rise in volume compared to July
  • Retail sales value up by 0.7%, 2.5% higher than February’s pre-pandemic levels
  • Stronger growth seen in three months to August at 16.4% for volume and 16.7% for value
  • Non-store retailing volumes up 38.9% compared to February
  • Clothing stores still 15.9% below pre-pandemic levels
  • DIY sales rise in August, particularly hardware, paints and glass stores
  • Online retail sales down 2.5% from July but up 46.8% compared to February
  • Consumers gaining confidence as pandemic habits persist
  • Retailers must adapt to link physical shopping with online experience

UK retail sales have experienced a fourth consecutive month of growth, with August seeing an increase in volume by 0.8% compared to July according to the Office of National Statistics (ONS). This marks a 4% rise when compared to pre-pandemic levels in February. The value of retail sales also increased by 0.7%, representing a 2.5% boost from February’s figures. In comparison to the previous three months, there was a stronger growth rate at 16.4% for volume and 16.7% for value sales. This positive trend can be attributed to significant increases in June and July following the sharp declines experienced during lockdown periods in March and April. Non-store retailing volumes were 38.9% higher than February, while clothing stores remained 15.9% below pre-pandemic levels. DIY sales continued to rise, particularly in hardware, paints, and glass stores. However, some 51.5% of food stores reported a decrease in footfall from the 10th to 23rd of August, which may be attributed to other parts of the economy reopening such as restaurants and bars. Online retail sales fell by 2.5% compared to July but remained 46.8% higher than February’s pre-pandemic levels. Mona Bitar, EY UK&I consumer leader, commented on the data: ‘It’s encouraging to see healthier retail sales figures, with consumers tentatively regaining confidence in shopping both online and in-store. However, retailers must now focus on linking physical stores with their online presence for a seamless customer journey. The pandemic has led to operational difficulties and increased costs; they must use data to understand customers’ needs and tailor products accordingly.’

Factuality Level: 8
Factuality Justification: The article provides accurate information from a reliable source (Office of National Statistics) and presents it objectively without any clear signs of sensationalism or opinion masquerading as fact. It also includes relevant details about different store types and expert commentary on the future challenges for retailers.
Noise Level: 3
Noise Justification: The article provides relevant information about retail sales growth and insights from an industry expert, but it could benefit from more analysis of long-term trends or possibilities and actionable insights for retailers.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the increase in retail sales volumes and value, impacting various store types such as non-store retailing, clothing stores, DIY sales, and online retail sales. It also mentions the challenges faced by retailers in adapting to the shift towards online shopping.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk