Retail sales dipped 2.5% in July as country suffered Euros hangover and wet weather wrecked shopping and holiday plans
- Retail sales fell 2.5 per cent in July as country hit with rain and Euros hangover
- The fall was against the expectations of analysts for a 0.2 per cent increase
- Volumes dipped to the lowest since April but are still above pre-pandemic level
Retail sales dipped 2.5 per cent in July as the country suffered a Euros hangover and wet weather wrecked shopping and holiday plans.
Volumes slipped back to the lowest level since Covid restrictions were eased in April, partly due to people opting to eat out more as hospitality.
Widespread rain and the end of the football tournament – which saw England narrowly beaten in the final – were also blamed.
The figures were significantly below the expectations of analysts of a 0.2 per cent increase – although they remain above pre-pandemic levels.
Food store sales slipped by 1.5 per cent for the month, compared with a 3.9 per cent rise in the previous month.
Volumes slipped back to the lowest level since Covid restrictions were eased in April, partly due to people opting to eat out more as hospitality
Meanwhile, non-food stores, such as fashion chains, reported a 4.4% decline in volumes.
The slump was particularly driven by falls for second-hand goods stores and computer and telecoms equipment stores, the ONS said.
Elsewhere, fuel sales dropped by 2.9 per cent, reflecting the first monthly fall since February.
Jonathan Athow, ONS deputy national statistician, said: ‘Following the Euro 2020-related boost in June, retail sales fell in July to their lowest level since shops reopened in April, but still remain well above pre-pandemic levels.
‘Food sales fell back as further lifting of hospitality restrictions meant consumers had more opportunities to spend outside retail.
‘Heavy rainfall at the start of July hit fuel sales, which dipped for the first time since February.’
Shoppers continued to spend more of their money online, with the proportion of retail sales taking place digitally rising to 27.9 per cent in July from 27.1 per cent in June.
Lisa Hooker, consumer markets leader at PwC, said: ‘While the headline rate of growth slowed in July compared with June, retail sales were still comfortably ahead of both last year and pre-pandemic levels.
‘One positive for the high street is that online has stabilised at around 28 per cent of retail sales, compared with over 36 per cent earlier in the year, showing that shoppers are increasingly confident to venture out onto high streets and retail parks.
‘As we look ahead to the rest of the summer, the outlook continues to be rosy, with staycations encouraging retail spending at home rather than abroad, even if the full reopening of leisure might somewhat divert spending from shops to restaurants, pubs and other venues.
‘This should give the sector some respite as it recovers from the last tumultuous year, and with the prospect of a wind-down in government support such as business rates relief.’
Food store sales slipped by 1.5 per cent for the month, compared with a 3.9 per cent rise in the previous month