Retail Sales Rebound In August

 The ONS has published retail sales data for August, noting that food and clothing purchases helped recovery after the large fall in July.

• Retail sales volumes are estimated to have risen by 0.4% in August 2023, partially recovering from a fall of 1.1% in July 2023 (revised from a fall of 1.2%). 

• Looking broader, sales volumes rose by 0.3% in the three months to August 2023 when compared with the previous three months. 

• Food stores sales volumes rose by 1.2% in August 2023, following a fall of 2.6% in July 2023 when supermarkets reported that the wet weather reduced clothing sales, and supermarket food sales also fell back.

• Non-food stores sales volumes grew by 0.6% in August 2023, following a fall of 1.2% in July 2023 when poor weather reduced footfall. 

• Non-store retailing (predominantly online retailers) sales volumes fell by 1.3% in August 2023, following a rise of 1.9% in July 2023 when wet weather and a range of promotions boosted sales.

• Automotive fuel sales volumes fell by 1.2% in August 2023, with retailers suggesting the fall was linked to a sharp increase in petrol and diesel prices.

• The percentage of retail sales taking place online fell from 27.4% in July 2023 to 26.9% in August 2023.  

• Online spending values fell by 0.9% from July to August 2023 because of falls in non-store retailing and other non-food stores, both of which grew strongly in July 2023.

Responding to the latest ONS Retail Sales Index figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said: 

“Returning consumer confidence helped retail sales regain lost ground after a challenging July. Toiletries, cosmetics, and books performed particularly well as consumers purchased holiday essentials for their late summer getaways. Although white goods and other big-ticket items continued to take a hit as households spent more cautiously. The next few months are vital for retailers as they gear up for the all-important Christmas trading. While cost-of-living challenges continue to loom large, retailers are working hard ensuring customers get the best possible value. Their capacity to do this is limited by the upcoming rise to business rates, which will see retailers paying hundreds of millions more every year and which the Chancellor should scrap in his upcoming Autumn Statement.”

Source : ONS, BRC

Image : shutterstock.com / William Barton (1137631598)

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