Retail gross sales within the UK hit a two-year excessive in August, as consumers spent extra on meals, summer time clothes, and seasonal reductions, offering a lift to the excessive avenue.
Annual retail gross sales volumes jumped by 2.5 per cent, exceeding forecasts of a 1.5 per cent rise, in keeping with the Workplace for Nationwide Statistics (ONS). This marks the strongest efficiency since July 2022 and an acceleration from July’s 1.4 per cent annual progress. On a month-to-month foundation, gross sales elevated by 1 per cent, with July’s determine additionally revised upwards to 0.7 per cent.
The ONS reported that buyers spent considerably extra on meals, clothes, footwear, and home goods, with end-of-season gross sales driving the uptick. Supermarkets, particularly, loved a powerful efficiency, contributing to the biggest annual rise in meals gross sales since summer time 2021.
Grant Fitzner, chief economist on the ONS, famous, “Supermarkets saw their best month since July 2021, with food sales rising as inflation continues to ease. However, total retail sales remain just below pre-pandemic levels.”
Meals spending elevated by 1.6 per cent year-on-year, bolstered by an additional decline in meals worth inflation to 1.2 per cent. Shopper confidence is anticipated to develop within the coming months, as decrease inflation and falling rates of interest provide reduction to family budgets. The Financial institution of England lately held its base charge at 5 per cent however is anticipated to decrease charges earlier than the top of the yr.
Whereas total family spending has but to totally get better to pre-pandemic ranges, the outlook for retailers is enhancing. Erin Brookes, managing director at Alvarez & Marsal, commented, “With cooler weather approaching, retailers are optimistic that spending on autumn and winter apparel will rise in the coming months.”
