Retail Sales Figures

BUSINESS INTELLIGENCE: ONE GNS

Grocery sales dip after Euros

ONS figures show food sales fell last month after Euros boost.

Food 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.

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 models and restructure in order to align to this new reality.”

Helen Dickinson, Chief Executive of the British Retail Consortium, commented: “The fifth consecutive month of rising sales is a testament to the perseverance and innovation of retailers who continue to constantly adapt to the changing Covid landscape.

“Unfortunately, the lifting of many social restrictions in July did not bring about the anticipated boost in sales compared with the previous months, and the wet weather appeared to have dampened consumer enthusiasm for shopping.”

The lifting of many social restrictions in July did not bring about the anticipated boost in sales compared with the previous months. Helen Dickinson

She added: “Retailers are keen to see growth continue throughout the second half of 2021, yet there are headwinds looming on the horizon. Challenges in global shipping and the shortage of UK lorry drivers are creating some disruption for consumers and additional costs for retailers. In October, the UK will introduce new checks on products of animal origin being imported from the EU, adding more costs to the system.

"Government must take action on these issues, increasing the number of HGV driving tests taking place and ensuring new EU-GB documentation checks are as light touch as possible.”

Consumer confidence remains stable

UK consumer confidence decreased to -8 in August, from -7 in July, the highest since February 2020.

GfK’s long-running Consumer Confidence Index – which is conducted among 2,000 people aged 16-year-old and over – reveals that two measures of confidence were up on July’s figures, two measures were down, and one measure stayed the same.

Joe Staton, Client Strategy Director at GfK, said: “Against a backdrop of cooling headline inflation and soaring house prices, the UK consumer confidence index is stable at -8 this August. Importantly, expectations for our personal financial situation for the coming 12 months are holding up and this positivity bodes well for the economy.

“Interestingly, this month the fivepoint fall in the major purchase index is counterbalanced by the five-point rise in the savings index, suggesting that consumers could be considering switching into saving rather than spending. Indeed, UK consumers have built their savings to record levels during Covid.

“With the economy continuing to open up and GDP bouncing back, the overall picture for the economic health of the nation is looking good. There are compelling reasons here to be cheerful as we begin to put the hardest pandemic months behind us.”