Retail sales jump 14% in June as spending returns to pre-pandemic levels

Retail sales improved sharply in June
PA
Mark Shapland24 July 2020

Retail sales jumped higher for the second consecutive month and have returned to pre-pandemic levels.

According to the Office of National Statistics, sales were up 13.9% in June, better even than the 12% spike in May.

The ONS said: "The two monthly increases in the volume of retail sales in May and June have brought total sales to a similar level as before the coronavirus pandemic."

The data was driven by DIY sales as people loaded up on electrical household appliances, hardware, paints and glass and furniture.

Online spending also helped fuel the figures, although the figure dropped to 31.8% in June compared with 33.3% in May.

But some areas of the sector remain depressed, in particular clothing sales. Textile, clothing and footwear sales were down 34.9%.

ONS deputy national statistician Jonathan Athow said: "Retail continued to recover from the sharp falls seen in April, with overall sales now almost back to pre-pandemic levels. But there are some dramatic differences in sales across the retail industry.

"Food sales continue above their pre-pandemic levels due to the closure of cafes, restaurants and pubs. Online sales have risen to record levels, and now count for £3 in every £10 spent. On the other hand, clothing sales remain depressed and across the high street sales in non-food stores are down by around one-third on pre-pandemic levels.

"The latest three months as a whole still saw the weakest quarterly growth on record."

The volume of total retail sales recovers to similar levels as before the coronavirus pandemic
ONS

Richard Lim, cheif executive at Retail Economics added: “The retail sector bounced back as the reopening of shops released pent-up demand for some retailers. But the recovery is being felt unevenly across the sector with clothing retailers remaining under significant pressure.

“Some consumers searching to break the monotony of being at home headed for the high street, but numbers remained considerably lower than pre-Covid levels.

“We continue to witness an extraordinary shift towards online shopping. A sizeable proportion of consumers are shopping for products online which they had previously only ever purchased in-store.

"Many are breaking through the initial barriers of setting up online accounts, entering payment details and overcoming issues of trust. It’s inevitable that these behaviours will become permanent for some, leading to a step-change in the proportion of online shopping going forward."

But analysts remained cautious about the future for retail sales as from today the government has made it mandatory for consumers to wear face masks.

It is expected this will stop some people from shopping.

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