Retail sales volumes jump 3.7% in August as store prices continue to fall

The figures from the Office of National Statistics (ONS) provide a glimmer of positive news for retailers after figures from the BRC-KPMG Retail Sales Monitor recorded a sales decline and the BRC-Springboard figures reported a drop in footfall during August.

Retail sales volumes in August remained relatively flat compared to July after edging up 0.2%.

However, the ONS reveals average store prices fell 3.3% year on year, the 14th consecutive month of year-on-year price falls.

The value of online sales increased 7.4% in August 2015 year on year, but decreased by 2.7% compared with the previous month.

Barclays head of retail and wholesale Ian Gilmartin said: “The external environment wasn’t the easiest, with volatility in the global economy naturally resulting in some consumers thinking twice before spending, so to have still achieved year-on-year growth is positive news for the industry.

“As we head towards the final quarter of 2015, the outlook remains strong, with low inflation and rising wages ensuring that consumers should have a good level of disposable income as we start the run in to Christmas.”