Business · NY Daily Wire
UK retail sales returned to growth last month amid a boost from online shopping and department stores, according to official figures. The Office for National Statistics (ONS) said retail sales volumes increased by 0.5% in August, compared with the previous month. It represented a recovery after a decline of 0.5% in July.
UK retail sales returned to growth last month amid a boost from online shopping and department stores, according to official figures. It was a stronger performance than widely expected, with economists having predicted a decline of 0.2% for August. Experts at the ONS said stronger trading by non-store retailers, which predominantly covers online firms, helped to support the uptick in performance.
Non-store retailers reported that sales volumes lifted by 1.7% for August compared with the previous month, bouncing back from a slump in demand in July. The figures also showed a recovery in sales from department stores, lifting to a three-month high of 1.8% for the month after firms had said “stock availability issues” weighed on trading in July. Clothing and footwear sales also improved for the month, rising by 1.1% compared with July.
It represented a sales recovery after a 2.7% fall in July, which had marked the sector’s worst performance for more than a year. Meanwhile, food retailers reported a 0.3% increase in monthly sales. The ONS said retail sales volumes increased by 0.9% over the three months to August, compared with the previous three months.
ONS senior statistician Jon Gough said: “Retail sales increased in the latest three months, with a particularly strong June for online outlets helping to boost their sales across the period. “Food store sales also rose, with supermarkets doing well in July and August.” Oliver Vernon-Harcourt, head of retail at Deloitte , said: “Retail sales performed better than expected in August as improving consumer confidence and the last of the summer heatwaves encouraged an uptick in spending across almost all categories. “ Consumers have bounced back after a minor spending setback in July, with sales volumes across the summer indicating a willingness to loosen the purse strings and spend on not just smaller luxuries, but other purchases too.” Jacqueline Windsor, head of retail at PwC UK, said: “Retailers will be hoping that this positive momentum continues in the critical run-up to Christmas.
“However, with inflation starting to rise, and energy and grocery price increases already forecast for the autumn, shoppers may struggle to stretch their budgets as far in the coming months.”
Source: The Independent
