Data: Retail sales slow as weather dampens lifting of restrictions

Total sales increased 6.4% in July compared to the same month last year, while like-for-likes rose 4.7%, according to the BRC-KPMG Retail Sales Monitor. This figure remained below the 3-month average growth of 14.6%, as well as the 12-month average growth of 10.4%.

When compared to pre-pandemic figures, retail sales grew 9.1% compared to the same month in 2019.

In-store sales of non-food items soared during the three months to the end of July, with sales surging 64.9%. That compared to an average 12-month growth of 20%. 

Food sales increased at a much slower rate during the same period, rising 2.9% on a total basis. 

Online spending on non-food items slowed, increasing just 0.6% in July. The online penetration of non-food spend decreased to 48.4% compared to a rate of 54.0% recorded a year earlier.

British Retail Consortium chief executive Helen Dickinson said: “July continued to see strong sales, although growth has started to slow. The lifting of restrictions did not bring the anticipated in-store boost, with the wet weather leaving consumers reluctant to visit shopping destinations.”

“However, the vacancy rate is continuing to rise. Many shops and local communities have been battered by the pandemic, with many high streets in need of further investment. Unfortunately, the current broken business rates system continues to hold back retailers, hindering vital investment into retail innovation and the blended physical-digital retail offering. The government must ensure the upcoming business rates review permanently reduces the cost burden to sustainable levels.”

KPMG UK head of retail Paul Martin added: “Both women’s and men’s clothing continued their revival with strong growth in-store and online. Many other non-food categories had a less strong performance, especially those related with the home after the house moving frenzy of recent months started to abate.  With better weather and school holidays underway, consumers are happy to shop for clothes, shoes and accessories for those much needed social events.”