According to the Office for National Statistics (ONS), UK retail sales saw a decline in September, with a 0.2% drop in total sales volumes compared to August. This follows a revised 0.6% decline in August. Despite the overall decrease, the fashion sector performed relatively well compared to other sectors, offering some comfort for struggling retailers.
It is important to note that sales volumes have been consistently falling since April, which marks the longest period of consecutive monthly declines in the series’ history since February 1996. In September, retail sales values, excluding petrol, also saw a decrease of 0.4%.
However, despite the decline, sales volumes were actually 4.2% higher than they were in February 2020 before the pandemic hit. Sales values also increased by 6.2%, providing some relief for retailers facing challenging times. On a year-on-year basis, sales volumes fell by 1.3%, while values rose by 2.3%. It is important to consider that the increase in values may have been offset by inflation, which is currently over 3%.
Non-food stores experienced a decline of 1.4% in sales volumes in September, primarily due to decreases in household goods stores, which saw a significant 9.3% decrease. Other non-food stores reported a more modest decline of 1.7%. However, clothing and department stores saw an increase in month-on-month sales volumes, with 4.3% and 0.2% growth, respectively. Despite this growth, sales volumes for these sectors were still below their pre-pandemic levels by 5.5% and 5.1%.
The online channel remains crucial for the retail industry post-lockdowns. Month-on-month, online sales values increased by 0.5%, but year-on-year, they were down 2.3%. Online sales accounted for 28.1% of total retail sales, a significant increase from the 19.7% recorded in February 2020. However, compared to a year ago, where online sales reached 36.6% of total retail sales, there has been a shift back to physical stores as consumers regain confidence in shopping in-person.
Department stores experienced a 3.8% increase in online sales compared to August but a drastic 15.3% decline year-on-year. This can be attributed to the reopening of physical stores, which impacted the turnover of their online counterparts. Textile, clothing, and footwear stores saw a decrease of 1.9% in sales volumes for the month but an increase of 5.9% compared to the previous year.
Jace Tyrrell, Chief Executive at New West End Company, expressed disappointment with the overall decline in retail sales. He emphasized the need for additional support, especially considering the reliance on overseas visitors for spending and maintaining the appeal of global brands in the West End. Tyrrell called on the government to explore simplified visa processes and review the restrictive Sunday trading hours policy, believing that now is the time to grant more freedom to retailers and visitors to speed up the recovery process.
In conclusion, although there was a dip in UK retail sales overall, the fashion sector demonstrated resilience compared to other sectors. The increase in sales volumes and values compared to pre-pandemic levels offers some optimism for retailers. However, additional support and policy changes are needed to ensure a full recovery in the retail industry.
Useful links:
– Office for National Statistics (ONS) – Retail Sales Report
– The Retail Gazette – ONS Retail Sales Report
