Retail continues to show signs of recovery

By Liz Wells in Industry News 11th August 2020

UK retail sales increased by 3.2% in July – this is the second consecutive month of growth since the start of the pandemic, new research reveals.

The BRC–KPMG Retail Sales Monitor, covering the four weeks to 1 August, shows food sales grew year-on-year. Over the three months to July, food sales increased 8.2% on a like-for-like basis and 6.1% on a total basis – the highest since June 2009.

Susan Barratt, chief executive of IGD, said: “Following two months of exceptionally strong growth, food and grocery sales slowed notably in July, signalling a move towards more normal or pre-lockdown shopper behaviour. Alcohol sales are still contributing significantly to growth for supermarkets, but less so than in May and June.

“IGD’s Shopper Confidence Index remained low but stable in July albeit with regional variations; local lockdowns in the north of England have led to a significant decrease in confidence in this region, while morale has been boosted in Scotland. However, the economic impact of Covid-19 will be felt on shopper confidence going forward and retailers should prepare for increased focus on savvy shopping for the remainder of the year at least.”