UK department stores experienced a decline in sales volumes in the month of August, according to the Office for National Statistics (ONS). Retail sales volumes fell by 0.9% on a month-on-month basis, with non-food store sales volumes particularly affected, experiencing a 1% decline. Department store sales saw a significant 3.7% fall, contributing to the overall decline. The sports store sector also struggled during this period.
These challenges have been persistent since department stores reopened in April, with sales volumes consistently decreasing month after month. However, there was some positive news for the clothing sector, as it was the only category in the non-food section to experience growth, with a 0.7% rise on a month-on-month basis. Compared to the same period last year, clothing store sales volumes remained flat but were 4.6% higher than in February 2020, prior to the pandemic.
In addition to the decline in sales volumes, overall sales by value also saw a slight decrease of 0.3% compared to July. However, they experienced a year-on-year increase of 3.6%, partly due to inflation, and were up nearly 7% compared to February 2020 levels.
Although the growth rate of online sales is slowing down, the proportion of retail sales occurring online continued to rise. In August, online sales accounted for 27.7% of total retail sales, up from 27.1% in July. This is a significant increase from the 19.7% recorded in February 2020.
Unfortunately, department stores faced difficulties in the online space as well. They experienced a significant 14.3% year-on-year decline in online sales and a 1.7% month-on-month decrease. However, textile, clothing, and footwear e-stores showed resilience, with a 2.3% year-on-year increase in sales, despite a slight 0.9% month-on-month decline.
Overall, UK department stores encountered challenges in August with declining sales volumes both in-store and online. However, the clothing sector managed to experience a positive month-on-month sales increase. While the growth rate of online sales has slowed, the proportion of retail sales happening online continues to rise. The future of the retail landscape remains uncertain as the industry continues to navigate the ongoing impact of the pandemic.
Useful links:
– ONS Retail Sales Report for August 2021
– BBC news article on UK retail sales decline in August 2021
