Retail Sales Volumes Continued To Decline In August

The Office for National Statistics has published retail sales data for August 2022.

Main Points:

• Retail sales volumes fell by 1.6% in August 2022, continuing a downward trend since summer 2021 following the lifting of restrictions on hospitality; in recent months, rising prices and cost of living are also affecting sales volumes.

• All main sectors (food stores, non-food stores, non-store retailing and fuel) fell over the month; this last happened in July 2021, when all legal restrictions on hospitality were lifted.

• Non-food stores sales volumes fell by 1.9% over the month because of falls in each of its sub-sectors: other non-food stores (negative 2.8%), department stores (negative 2.7%), household goods stores (negative 1.1%) and clothing stores (negative 0.6%). 

• Non-store retailing (predominantly online retailers) sales volumes fell by 2.6% in August 2022; despite this fall, sales volumes were 24.4% above their February 2020 levels.

• Food store sales volumes fell by 0.8% in August 2022, which leaves them 1.4% below their pre-coronavirus (COVID-19) levels in February 2020.

• Automotive fuel sales volumes fell by 1.7% in August 2022; these were 9.0% below their February 2020 levels.

• The proportion of retail sales online fell to 25.7% in August 2022 from 26.3% in July 2022; despite this fall, it remains significantly above pre-coronavirus levels (19.8% in February 2020).

Commentary:

Responding to the latest Retail Sales Index data showing retail sales (excluding automotive fuel) up 3.7% by Value (YoY) but down 5.0% by Volume (YoY), Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“Sales rose slightly in August, though volumes were down significantly as a result of inflation at 10%. Consumers cut back on major purchases, such as white goods, as falling real incomes made many people think twice. Retailers are working hard to keep prices down for their customers, despite their own costs rising substantially – including energy, imports, shipping and haulage.

“The new Prime Minister must ensure the cost burden on retailers is not made worse by an £800m rise in business rates expected next year. Without action, it will not just be retailers – but also their customers, who pay the price of this rising tax.”

Source : ONS, BRC

Image : shutterstock.com (503419588)

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