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Retail sales continue to bounce back in June | Retail sales continue to bounce back in June |
(32 minutes later) | |
UK retail sales continued their bounce back in June, as the reopening of shops released pent-up demand. | UK retail sales continued their bounce back in June, as the reopening of shops released pent-up demand. |
The amount of goods sold last month increased by 13.9%, said the Office for National Statistics (ONS). | The amount of goods sold last month increased by 13.9%, said the Office for National Statistics (ONS). |
The rise followed record falls in April and a partial recovery in May as the coronavirus pandemic led to widespread shop closures and hit spending. | The rise followed record falls in April and a partial recovery in May as the coronavirus pandemic led to widespread shop closures and hit spending. |
Sales were boosted by food stores, which reached new highs for the pandemic period. | Sales were boosted by food stores, which reached new highs for the pandemic period. |
Compared to February, volumes of food sales were 5.3% higher while non-store retailing grew by 53.6%. | Compared to February, volumes of food sales were 5.3% higher while non-store retailing grew by 53.6%. |
The ONS said the rebound brought overall retail sales back to a similar level to where they were pre-lockdown, but it added that there was a "mixed picture" in different store types. | The ONS said the rebound brought overall retail sales back to a similar level to where they were pre-lockdown, but it added that there was a "mixed picture" in different store types. |
In June, non-food stores, including department stores and clothes shops, partially recovered from strong falls during the lockdown but were still 15% lower than in February. | |
Non-essential shops in England were not allowed to reopen until 15 June, so they were only trading for half the month. | |
Jonathan Athow, ONS deputy national statistician, told the BBC that there had been "some really big changes under the surface" of the retail landscape since lockdown began. | Jonathan Athow, ONS deputy national statistician, told the BBC that there had been "some really big changes under the surface" of the retail landscape since lockdown began. |
"Food shops continue to do quite well, as we're eating at home more," he said. | "Food shops continue to do quite well, as we're eating at home more," he said. |
"But the real growth has been in online sales. Online sales continue to go from strength to strength. We've had record online sales - £3 in every £10 of retail sales is now spent online and that's a really big increase." | "But the real growth has been in online sales. Online sales continue to go from strength to strength. We've had record online sales - £3 in every £10 of retail sales is now spent online and that's a really big increase." |
Mr Athow said some sectors were "struggling". | Mr Athow said some sectors were "struggling". |
"Some of that is due to the restrictions, which were only relaxed part-way through June in England. Clothing is down by about a third. | "Some of that is due to the restrictions, which were only relaxed part-way through June in England. Clothing is down by about a third. |
"And if you look at the High Street more generally, sales in the High Street, or physical shops, are also down by about a third." | "And if you look at the High Street more generally, sales in the High Street, or physical shops, are also down by about a third." |
The proportion of online spending reduced to 31.8% in June when compared with the record 33.3% reported in May, but was a considerable increase from the 20% reported in February, said the ONS. | The proportion of online spending reduced to 31.8% in June when compared with the record 33.3% reported in May, but was a considerable increase from the 20% reported in February, said the ONS. |
The ONS added that fuel sales remained at low levels, despite some recovery in May and June with the ease of travel restrictions. | The ONS added that fuel sales remained at low levels, despite some recovery in May and June with the ease of travel restrictions. |
One businesswoman who has taken advantage of the move to online shopping is Hellen Stirling-Baker of Small Stuff, a Sheffield-based independent retailer. | |
She sells sustainably made toys, gifts and homewares for young children. | |
"Driving my store online is how I have been able to survive," she said. | |
"Offering face-to-face video calling for customers to recreate the in-store experience has been crucial and sales are picking up. | |
"I've also added new services such as local delivery by hand, which really boost engagement." | |
Driving forces | |
Jeremy Thomson-Cook, chief economist at Equals Money, said the retail sector had seen a "V-shaped recovery", echoing remarks by the Bank of England's chief economist, Andy Haldane. | |
"The motto of the British consumer has long been 'When the going gets tough, the tough go shopping' and it seems like June encapsulated that well," he added. | "The motto of the British consumer has long been 'When the going gets tough, the tough go shopping' and it seems like June encapsulated that well," he added. |
"In June, there were a number of driving forces at play which saw sales rise: pent-up demand following an easing of lockdown conditions, a lack of alternatives, good weather and the furlough scheme still running at full steam. | "In June, there were a number of driving forces at play which saw sales rise: pent-up demand following an easing of lockdown conditions, a lack of alternatives, good weather and the furlough scheme still running at full steam. |
"All four of these driving forces are likely to dwindle in the coming months and that's when we'll see just how strong demand is." | "All four of these driving forces are likely to dwindle in the coming months and that's when we'll see just how strong demand is." |