Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
UK retail sales bounced back last month following a poor performance in July, according to the latest British Retail Consortium and KPMG sales monitor on Tuesday.
Total UK retail sales increased 4.1% on an annual basis in August, picking up sharply from the 1.8% rise recorded in July.
July’s rise was the weakest year-on-year growth in retail sales since August 2022, according to the BRC. Meanwhile, August’s rise was above the three-month average growth rate of 3.6% and in line with the 12-month average growth rate of 4.1%.
‘August saw a bounce back in retail sales growth to 4.1%, which will come as a relief for many retailers. Health, beauty and food and drink were the strongest performing categories both on the high street and online, as consumers made the most of brief spells of sunshine to enjoy the summer holidays,’ said Paul Martin, UK head of retail at KPMG.
Helen Dickinson, chief executive of the BRC, cautioned that sales growth may fall in the coming months, even if volume growth does not, as the rate of price rises falls amid easing inflation.
‘Furthermore, high interest rates and high winter energy bills will put pressure on many households to spend cautiously. Retailers are combatting this through a clear focus on great value for consumers, expanding budget ranges, and finding ways to cut costs where possible,’ Dickinson said.
As summer draws to an end, KPMG’s Paul Martin said retailers will now have their sights firmly set on the ‘most crucial’ period of trading as consumers get ready for Christmas.
‘Inflation levels are heading in the right direction, albeit much more slowly than hoped, and savvy shoppers will be Christmas bargain hunting much earlier this year, as price continues to drive decisions and consumers seek out good deals to stretch their budgets. With shoppers becoming more calculated and aware of what they are getting for their money than we have seen for a long time, retailers will have to fight harder for every sale,’ he said.
Copyright 2023 Alliance News Ltd. All Rights Reserved.