1 minute read
Food Sales
by 55 North
BUSINESS INTELLIGENCE: OFFICE FOR NATIONAL STATISTICS
Food sales falling as hospitality recovers
The monthly fall in food sales may be associated with an increase in social spending.
Food store sales volumes fell by 1.2% in August 2021, following a fall of 2.0% in the previous month, new research shows.
The Office for National Statistics said this monthly fall in food sales volume may be associated with an increase in social spending linked to the further lifting of hospitality restrictions since July. This is supported by data from Open Table, which showed a pickup in online restaurant reservations in August.
However, despite the monthly fall, food store sales volumes are still 3.4% above pre-coronavirus pandemic levels in February 2020.
The figures also show automotive fuel sales volumes increased by 1.5% in August as people continued to increase the amount they travel. This is supported by Department for Transport road traffic data which reported an increase in the volume of motor vehicle traffic during August. However, automotive fuel sales volumes were 1.2% lower than February 2020, before the impact of the pandemic.
The proportion of retail sales online rose to 27.7% in August 2021 from 27.1% in July, substantially higher than the 19.7% in February 2020 before the pandemic, the ONS data reveals.
Karen Johnson, Head of Retail & Wholesale at Barclays Corporate Banking, said: “Looking ahead, we can expect to see sales figures return to some kind of normality as the nation settles itself into the post-lockdown world.
“It has been great to see consumer confidence remaining strong, and now the whole sector will be hoping that supply issues won’t pose too much of a challenge for meeting demand in the coming months.”
Lynda Petherick, Head of Retail, Accenture UKI, added: “The easing of self-isolation rules, summer staycations and further easing of hospitality restrictions helped maintain a healthy level of consumer spending.
“However, the continued impact of labour shortages and supply chain disruption weighed heavy on the sector, in a month that was characterised by images of bare shop shelves and delayed deliveries.”
