ONS: Retail Sales Rose In August

The ONS has published retail sales data for August, covering the 28 July 2024 to 24 August 2024.

• Retail sales volumes (quantity bought) are estimated to have risen by 1.0% in August 2024, following a rise of 0.7% in July 2024 (revised up from a 0.5% rise in our previous publication). 
  
  
• In August, sales volumes were at their highest index levels since July 2022. When compared with their pre-coronavirus (COVID-19) pandemic level in February 2020, volumes were down by 0.4%.  
  
  
• Over the year to August 2024, sales volumes rose by 2.5%, the largest annual rise since February 2022.
  
  
• More broadly, sales volumes rose by 1.2% in the three months to August 2024, when compared with the three months to May 2024, and a 1.0% rise when comparing with the same period last year. 
  
  
• Food stores sales volumes rose by 1.8% in August 2024, following a rise of 0.3% in July 2024. Compared with August 2023, sales volumes rose by 0.6%, the largest yearly increase since July 2021. This growth was mainly from supermarkets. Retailers suggested that better weather contributed to rises in sales volumes.  
  
  
• Non-food stores sales volumes, the total of department, clothing, household and other non-food stores, rose by 0.6% in August 2024, with clothing stores having the largest impact. Comments from retailers attributed the growth to end-of-season sales, alongside some mention of better weather. This follows a rise of 1.6% in July 2024. 
  
  
• The Met Office climate summaries reported that August 2024 had slightly above average temperatures. This was offset against the previous month when the Met Office climate summaries reported the coldest start to July since 2004. 
  
  
• Online sales showed mixed pattern across sectors. The amount spent online remained flat at 0.0% during August 2024, and rose by 4.3% compared with August 2023.  
  
  
• Total spend, the sum of in-store and online sales, rose by 0.4% over the month. As a result, the proportion of sales made online decreased from 27.8% in July 2024 to 27.6% in August 2024.

BRC Commentary

Responding to the latest ONS Retail Sales Index figures, which showed sales up 2.4% by value, and up 2.3% by volume, Kris Hamer, Director of Insight at the British Retail Consortium, said:

“With summer in full swing, sales growth picked up in August. Computing performed well as extensive summer discounting encouraged consumers to upgrade their tech, and students organised themselves for the new academic year. Food, cosmetics, and fashion sales also had a good month as people hosted family and friends for picnics and barbecues and prepared for summer holidays and other social events. Meanwhile, furniture and household goods failed to shine, as people opted to spend their money on experiences instead.”

“Clearly, the high cost of living still bears down on consumers, meaning demand may dip further when energy bills rise once again in October. On top of difficult trading, retail faces a disproportionate tax burden compared to other industries, holding back investment, and contributing to a decline in shops and jobs. Government must take decisive action in the upcoming Budget and introduce a 20% Retail Rates Corrector - a 20% adjustment to bills for all retail properties - to level the playing field. This would drive economic growth and restore high streets up and down the country.”

Source : ONS, BRC

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