Retail sales bounce back in June

Sales volumes jumped by 13.9% in June compared with the month before, according to new data from the Office for National Statistics (ONS).

Demand at food stores remained strong, hitting new highs for the pandemic period, the research shows.

Richard Lim, chief executive of Retail Economics, said: “The retail sector bounced back as the reopening of shops released pent-up demand for some retailers. But the recovery is being felt unevenly across the sector with clothing retailers remaining under significant pressure.”

He added: “As the mandatory wearing of face masks comes into play, it will only create more friction for shoppers. Our research shows that 30% of consumers feel it will lead them to visit shops less frequently adding another hurdle on the road to recovery for the sector.”

Karen Johnson, head of retail & wholesale at Barclays Corporate Banking, added: “The last few months have been an uphill struggle for UK retail, but this latest set of figures offers hope to many that the industry is now beginning to reach level ground. Although consumer spend was down more widely, June’s retail sales figures have proven to be a high point – with grocery, household and technology spending all driving a rise in retail income.”

Silvia Rindone, EY UK&I retail partner, said: “While optimism about the future is more positive now, we’re still not past the pandemic and getting back to ‘normal’ will still take time. With face coverings now compulsory in England’s shops from, physical retailers need to continue to focus on reassuring customers – making them feel protected and secure by maintaining a heightened focus on hygiene and sanitation. Customers’ health and wellbeing should still be front and centre of businesses’ strategies.”

Ian Geddes, head of retail at Deloitte, added: “Deloitte data, collected as non-essential stores reopened, found that 46% of UK consumers felt safe visiting a store. This reflection in June’s figures signals a much-needed, albeit careful, step in the right direction for retailers.”

“For both food and non-food sectors, the challenge will be maintaining the pace of returning consumers. Online sales as a proportion of overall sales remained high in June, at 31.8%. With consumers having experienced the convenience of online shopping during lockdown, some retailers will be focusing once more on their in-store experience in the ‘new normal’.”