UK retail sales returned to growth in August, helped by stronger online shopping, department stores and clothing sales, in a better-than-expected start to the second half of the year for consumer spending.
Retail sales volumes rose 0.5 per cent from July, according to figures from the Office for National Statistics, outperforming economists’ expectations for a 0.2 per cent decline.
The increase was driven in part by non-store retailers, which predominantly cover online businesses. Their sales volumes rose 1.7 per cent during August, recovering from a sharp fall in demand the previous month.
Department stores also recorded a stronger performance, with sales volumes rising 1.8 per cent in August to their highest level in three months. Retailers had previously cited “stock availability issues” as a drag on July trading.
Clothing and footwear sales increased 1.1 per cent month on month, reversing some of the sector’s weakness in July, when sales volumes fell 2.7 per cent in their worst performance for more than a year.
Food retailers recorded a more modest 0.3 per cent increase.
Overall, retail sales volumes rose 0.9 per cent in the three months to August compared with the previous three months, suggesting consumer spending retained some momentum through the summer.
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.”
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