UK Retail Sales Report summary
September 2024
Period covered: Period covered: 28 July – 24 August 2024
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30-day membership trial now.
Retail sales
Retail sales rose by xx% YoY in August supported by a boost for summer essentials. Factors impacting the headline performance in the month include:
August heatwave
The August heatwave boosted sales for summer essentials like BBQs, clothing, and gardening, with temperatures peaking at over 34°C (Met Office). Back-to-school prep helped ease electricals’ decline to -xx%, while footwear rose xx% YoY. The Paris Olympics supported athleisure demand, boosting sports gear sales, but ultimately failed to revive growth in Clothing, with price-sensitive shoppers waiting for discounts.
Stabilising backdrop
Below-average temperatures in the first half of July impacted Clothing & Footwear sales, while later record temperatures boosted summer essentials such as BBQ foods. In August, economic conditions stabilised. The Bank of England cut interest rates from 5.25% to 5%, expecting weaker pay and price-setting. Inflation held steady at xx%, although airfares rose xx% MoM and rents jumped xx% YoY.
Flailing confidence
Price continues to dominate retail decisions, as real wages growth limps at only xx%. Political uncertainty and warnings of potential tax hikes has severely impacted consumer confidence, reversing gains earlier this year.
Shifting footfall
In a month of two halves, retail footfall declined in early August due to riots and holidays abroad, but later recovered amid a heatwave and music events.
Back to store
Post-pandemic, in-store shopping has rebounded. The online penetration rate is now below where we’d expect to have been based on pre-pandemic growth rates, having flatlined at xx%, below expectations of xx% penetration,
Compared to expectations, annual online sales are £xxbn behind where we’d otherwise have expected them to be based on pre-pandemic growth rates.
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Sales volumes rise in August heatwave
Source: Retail Economics, ONS, seasonally adjusted
