ONS Reports Strong Retail Sales Growth In June

The ONS has reported on retail sales for June, covering the four-week period 31 May 2020 to 4 July 2020. 

Summary

• In June 2020, the volume of retail sales increased by 13.9% when compared with May 2020 as non-food and fuel stores continue their recovery from the sharp falls experienced since the start of the coronavirus (COVID-19) pandemic.

• The two monthly increases in the volume of retail sales in May and June 2020 have brought total sales to a similar level as before the coronavirus pandemic; however, there is a mixed picture in different store types.

• In June, while non-food stores and fuel sales show strong monthly growths in the volume of sales at 45.5% and 21.5% respectively, levels have still not recovered from the sharp falls experienced in March and April.

• Food stores and non-store retailing both reached new high levels since the start of the pandemic, with volume food sales 5.3% higher, and non-store retailing 53.6% higher, than February.

• In the three months to June, the volume of sales decreased by 9.5% when compared with the previous three months, with declines across all store types except food stores and non-store retailing.

• The proportion of online spending reduced to 31.8% in June when compared with the record 33.3% reported in May, but is a considerable increase from the 20.0% reported in February.

Non-Store Retailing

Non-store retailing has reached a new high level in June 2020, with continued growth during the pandemic and a 53.6% increase in volume sales when compared with February 2020.

Despite a moderate monthly increase of 1.1% in June, this sector has remained at historically high levels, with the benefit of continued trade for many online stores while social distancing measures were in place. While a number of store types have started trading again in June, consumers are still spending online and retaining the high level of sales. 

Non-food stores was one of the hardest hit sectors during the pandemic because of many stores falling under the non-essential store types listed by government. While non-food stores show some recovery with strong growth in May and June 2020, sales have not currently returned to the levels experienced before lockdown.

The strong monthly growth of 45.5% in the volume of sales in June still results in lower than usual levels, showing a partial recovery. When compared with February, non-food stores were at negative 15.0% in volume terms and at negative 15.9% in value terms.

A closer look at the growth in household goods stores

In June 2020, household goods stores recovered from the falls caused by the coronavirus pandemic, with increased value sales of 1.9% and volume sales of 3.6% when compared with February 2020. All household goods store types, except music and video, made a full recovery from the initial declines

In June, electrical household appliances, hardware, paints and glass, and furniture stores all returned to similar levels as before the pandemic. We see increased sales in electrical household appliances and hardware stores, with feedback from retailers suggesting that people focused on home improvements during lockdown, which helped boost their sales. We also see furniture stores returning to normal levels.

Source : ONS

Commentary

Michelle Stark, Sales and Marketing Director at Fasthosts, a technology provider specialising in cloud services, web hosting and other essential services for online businesses. I hope this is of interest:

“Whilst the economy has been dramatically affected during the Coronavirus crisis, in particular the British high street, it's encouraging to see that consumer spending online has increased during the lockdown period. Expectedly, the amount of money spent online increased by 61.9% in June, when compared with February. Throughout lockdown, online shopping has been the go-to for many consumers and has now become the norm.

Although the high street has re-opened its doors and lockdown measures continue to ease, we believe online shopping will still be the preferred way to shop as consumer anxiety remains following the pandemic. We also can’t forget that the pandemic still poses a threat to the retail industry with ongoing store closures and job losses across the UK.

For the meantime, we expect to see see more retailers re-inventing their shopping experience online to entice customers and keep sales booming.”

Source: www.fasthosts.co.uk

Source : ONS

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