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August 11, 2020

BRC report reveals slight recovery in UK retail sales in July

UK retail sales in July have increased by 3.2% on a total basis compared with 0.5% increase during the same period last year, according to the British Retail Consortium (BRC).

UK retail sales in July have increased by 3.2% on a total basis compared with 0.5% increase during the same period last year, according to the British Retail Consortium (BRC).

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  • Which industry sectors are most vulnerable to reduced consumer demand?
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by GD50 Custom
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According to the BRC, the growth is for the second consecutive month since the beginning of Covid-19 pandemic.

The report said that BRC non-food retail sales increased by 7.9% on a like-for-like basis in the three months to July. In-store sales of non-food items dropped by 29.3%.

It also revealed that food sales over the three months to July increased by 8.2% on a like-for-like basis and 6.1% on a total basis.

British Retail Consortium chief executive Helen Dickinson OBE said: “July saw the second month of growth as lockdown measures eased and demand gradually began to return in some places. Many shops continued to struggle as footfall was down, with many people still reluctant to go out, and fewer impulse purchases.

“The strongest performance came from food, furniture and homeware, as consumers increasingly invest in their time at home, however, many shops, particularly in fashion, jewellery and beauty, are still struggling to survive. Online sales remained buoyant, slowing only slightly despite more shops reopening.”

Meanwhile, online non-food sales increased by 41.0% during the month, compared to 3.7% the same period last year.

Additionally, the non-food online penetration rate improved to 42.0% this July from 29.7% in July last year.

Dickinson added: “While the rise in retail sales is a step in the right direction, the industry is still trying to catch up lost ground, with most shops having suffered months of closures. The fragile economic situation continues to bear down on consumer confidence, with some retailers hanging by only a thread in the face of rising costs and lower sales.”

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.