The late arrival of summer came to the rescue of the sodden High Street last month when retail sales rose by 1% in August, according to latest official figures.
The Office for National Statistics (ONS) said sales volumes were exactly 1% higher than July with supermarkets reporting a surge in sales of food and drink once the warmer weather finally arrived and fashion retailers citing end of season sales for brisker trading.
The figure was much stronger than the City’s consensus forecasts of 0.4% and suggests shoppers are willing to spend as real incomes rise although this could be undermined by the sharp fall in consumer confidence revealed in today’s GfK survey.
Retail has generally suffered a fairly flat late spring and summer in part because of the prolonged period of unusually wet weather that kept shoppers away from high streets.
Sales volumes rose by 1.2% in the three months to August compared with the three months to May 2024. However they are still 0.4% below levels seen immediately before the pandemic in February 2020.
Oliver Vernon-Harcourt, head of retail at consultants Deloitte, said: “The late arrival of sunshine and the busy agenda of sporting events in August gave a much-needed lift to UK retail sales, with consumers spending more on summer clothing ranges and food for outdoor socialising. The first cut in interest rates in four years last month saw a rebound in the property market, which might have led to the growth in sales of household goods.
“While many consumers remain cautious and are opting out of purchasing big ticket or luxury items, some are still treating themselves by spending on little luxuries, resulting in a boost in sales of small discretionary items in personal care and in premium food categories.”
