ONS Retail Sales August 2024

Retail sales (value, non-seasonally adjusted, exc. fuel) rose by 2.5% year-on-year (YoY) in August according to the latest ONS data. It compares to a 6.4% uplift a year earlier, supported by higher levels of inflation.
In volume terms (non-seasonally adjusted, exc. fuel), retail sales rose by 2.3% YoY in August following a 1.7% decline in the previous month. It compares to a weak 1.5% decline a year ago.
It should be noted that ONS figures are based on a sample of some 5,000 retailers and are subject to revisions.

Modest volume growth in August

Source: ONS, Retail Economics analysis

Note: all retail sales figures provided below are non-seasonally adjusted, excluding Fuel, unless stated otherwise.

Food and non-food

Food sales values softened to a 1.8% YoY rise in August amid easing inflation. This compares to a 7.2% rise a year earlier during periods of high inflation. Adjusting for inflation, volumes ticked up by just 0.5% in August against a 3.8% decline in the previous year.
Non-food sales values rose by 2.2% in the month compared to a 5.1% rise in the previous year. In volume terms, non-food sales ticked up to 2.5% in July against a 0.5% decline a year earlier.
Non-food shoppers continue to focus on smaller indulgences, delaying big ticket spending.
Pharmaceuticals, cosmetics and toiletries volumes rose by 2.2%, marking its weakest growth since April.
Footwear and Leather Goods volumes rose by 2.4% against a strong 14.6% surge a year earlier. However, Clothing sales slipped 0.9% in August, although values rose by 0.5%.
Sales volumes of Household Goods remained in decline at -4.1% in August, having been in decline since February 2022. Big ticket Furniture and Lighting volumes plunged by 15.1%, despite declining prices (values down 16.1%).

Online

Online sales values rose by 4.3% YoY in August, against a 10.5% rise a year earlier.
Household Goods continued to face the deepest declines, plummeting 12.7% against a strong 22.0% rise last year, while Clothing & Footwear inched up 0.5%.
Non-store retailing (a proxy for pureplay retailers) rose by 4.5% YoY in the month, against an 10.2% increase a year earlier.
The proportion of retail sales made online slipped to 25.8% in August, up on 25.3% a year earlier.
Overall, average weekly online sales were £2.27bn in August, up from £2.17bn in the previous year.

Retail sales price deflator

The retail sales deflator (a measure of inflation specific to retail) was broadly flat in August (+0.2% when excluding fuel and -0.2% when including fuel).
The implied price deflator among food softened to 1.2% in August, against a 11.4% rise in the previous year. Among non-food stores, the price deflator slipped into deflation at -0.3%