Covering the four weeks 28 July – 24 August
2024
-
UK Total retail sales
increased by 1.0% year on year in August, against a growth of
4.1% in August 2023. This was above the 3-month average growth
of 0.4% and below the 12-month average growth of 1.2%.
-
Food sales increased 2.9% year on year over
the three months to August, against a growth of 8.2% in August
2023. This is below the 12-month average growth of 5.0%. For
the month of Aug, Food was in growth year-on-year.
-
Non-Food sales decreased 1.7% year on year
over the three-months to August, against a decline of 0.2% in
August 2023. This is above the 12-month average decline of
2.0%. For the month of August, Non-Food was in decline
year-on-year.
-
In-store Non-Food sales over the three months
to August decreased 2.8% year on year, against a growth of 1.3%
in August 2023. This is below the 12-month average decline of
2.1%.
-
Online Non-Food sales increased by 1.5% year
on year in August, against an average decline of 1.7% in August
2023. This was above the 3-month average increase of 0.3% and
above the 12-month average decline of 1.8%.
- The online penetration rate (the proportion
of Non-Food items bought online) increased to 34.7% in August
from 34.1% in August 2023. This was below the 12-month average of
36.3%.
Helen Dickinson OBE, Chief Executive
of the British Retail Consortium, said:
“Sales growth picked up in August, particularly for food as
people came together to host barbecue and picnic gatherings for
family and friends, and for summer clothing, health & beauty
products as people prepared for trips away and summer social
events. While computing did well as university students made the
most of summer discounting and readied themselves for the new
academic year, other back to school related sales were weaker
than normal as some families opted for second hand purchases.”
“Following a difficult summer for much of retail, and the
possible weakening of consumer spending as energy bills rise come
October, many will be waiting for the Chancellor's Autumn Budget
before finalising their investment strategies. Labour's first
budget is a golden opportunity to make good on their manifesto
commitment and fix the broken business rates system which is
holding back investment in people, places, technology and
limiting growth. Decisive action will benefit working people
across the country.”
Linda Ellett, UK Head of Consumer, Retail & Leisure,
KPMG, said:
“Despite summer finally making an appearance, and a slight uptick
in consumer confidence, shoppers did not catch-up their spending
during August, with total sales growth of only 1% reflecting the
challenging retail environment that is likely to dominate for the
rest of this year.
“After many tough months of falling sales, sports and travel
equipment enjoyed a welcome boost during this key summer holiday
period, and sales of clothing also saw a second month of growth
on the high street. Food and drink sales were positive on
the high street, whilst online retailers saw demand for DIY and
gardening items with growth at nearly 11%. Fashion
retailers will be hoping sales growth continues as they look to
dispose of excess summer stock as we head into the key autumn
season.
“Consumer sentiment is gradually starting to improve, but there
still remains some nervousness around potential tax rises and the
cost of putting the heating back on when the cooler weather
arrives. The fragile nature of consumer confidence means shoppers
will continue to be driven by price and value, moving from brand
to brand to find the best price benefit and we are likely to see
retailers using promotional activity to seek to win at this.
“As green shoots of growth start to appear, those retailers
looking to seize on slowly returning consumer confidence will
need to demonstrate best value for money, as well as tap in to
the “experience” factor as consumers focus their discretionary
spend on having fun or experiences over owning more ‘stuff'.
Winning retailers will need clear differentiation, targeting
specific consumer needs, and executing with consistency and
clarity.”
Food & Drink sector performance | Sarah Bradbury,
CEO, IGD, said:
“With the Olympics well under way and
Summer in full swing, shoppers found opportunities to enjoy more,
smaller-scale occasions during August.
Comparing the first four weeks of the month against the same
period last year yields positive news for the grocery market, as
both sales and volumes have seen up-tick since last year and the
rate of growth has accelerated from July.
While Shopper Confidence has remained stable for the third month
in a row, the outlook for the year ahead continues with caution.
As we approach October's Budget announcement, we expect to see
more movement in confidence as shoppers begin to understand what
the future might hold.”
