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Retailers

Sales values up but ONS warns of winners and losers

Rachel WoodBy Rachel WoodSeptember 23, 20203 Mins Read
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The value of retail sales increased by 0.7% and volume sales by 0.8% in August when compared with the previous month, the Office for National Statistics has revealed.

And when compared with February 2020’s pre-pandemic level, total retail sales were 2.5% and 4.0% higher in value and volume terms respectively it said, in its first estimate of sales values.

When compared with the previous three months, a stronger rate of growth was seen in the three months to August, at 16.4% and 16.7% for value and volume sales respectively. Strong growth was seen here because of large monthly increases in June and July when compared with the sharp falls experienced over lockdown in March and April.

The only measure to show a decline was value sales in the three months to August when compared with the same three months a year ago, at negative 0.6%.
Despite total levels of retail sales increasing to above pre-pandemic levels, there was a mixed picture within each sector as not all stores experienced this bounce back.

In August, total retail sales volumes were 4.0% higher than February. Sectors above February’s pre-pandemic level were food stores, other non-food retailing, household goods and non-store retailing. All other sectors have shown a slower rate of growth since lockdown but have continued to recover.

Volume sales within non-store retailing increased sharply in April and May, and sales in August were 38.9% higher than February 2020. This was driven by a shift to online orders during lockdown because of temporary store closures for non-essential stores.

As a result, all non-food stores experienced a sharp decline in April, with signs of recovery from May to August 2020. Clothing stores were the worst hit during this time as sales in August were 15.9% lower than February 2020.

Looking at information gathered from retailers in both the Retail Sales Inquiry and Wave 12 of the Business Impact of Coronavirus Survey (BICS), which covered 10 to 23 August, 85.7% of clothing stores reported a decrease in footfall.

Commenting on the figures Jonathan Athow, deputy national statistician for economic statistics, said: “Retail sales continued to grow, further surpassing their pre-pandemic level.

“Sales of household goods thrived as the demand for home improvement continued and, despite a dip this month, online sales remained high.

“However, clothing stores continued to struggle with sales still well below their February level. Overall, the switch to greater online sales means the high street remains under pressure.”

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Rachel Wood

Rachel Wood, graphic designer. More than 40 years ago, I was one of the first females to be offered an apprenticeship within the printing industry. I've worked on record sleeves, DVD covers and various magazines throughout my career. In my spare time I collect movie posters and attend comic cons, I keep fit (and sane) with gardening and strength & conditioning training.

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