The Week in Retail 70

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Grocery sales dip aft

ONS figures show food sales fell last month after Euros

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ood store sales volumes fell by 1.5% in July 2021, down from an increase of 3.9% in the previous month when sales were boosted by the start of the Euro 2020 football championship, new research reveals. The Office for National Statistics says the fall is broadly in line with data on UK spending on debit and credit cards, based on CHAPS payments made by credit and debit card payment processors that also reported a fall in spending on staples between June and July alongside an increase in social spending, which may be linked to the further lifting of hospitality restrictions in July. However, food store sales volumes are still 4.9% above their pre-coronavirus pandemic levels in February 2020. CHAPS payments reported a fall in spending on staples between June and July alongside an increase in social spending

Meanwhile, automotive fuel sales volumes fell by 2.9% over the month, its first monthly fall since February 2021, according to the ONS figures. Heavy rainfall in early July impacted road traffic volumes and as a result automotive fuel sales volumes are now 6.7% below their pre-pandemic February 2020 levels.

Richard Lim, Chief Executive of Retail Economics, said grocery sales had returned to levels more in keeping with long-run trends as consumers started returning to pre-pandemic behaviours.

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He added: “Online sales remained considerably higher than pre-pandemic levels, with the prospect of a permanent shift in shopping habits gaining weight. Retailers continue to pivot business

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