UK retail sales slowed during a wet July and more stores closed as the pandemic continued to damage the UK’s high streets, industry figures showed.
Total sales rose 6.4% compared with growth of 14.7% over the previous three months and 10.4% during the past year. Like-for-like sales rose 4.7% compared with a three-month average of 9.7% and 11.1% over the past year, the British Retail Consortium said.
The BRC said the slowdown was caused by wet weather and the reopening of hospitality during July, which gave consumers other options for spending. Stores continued to close as the impact of the pandemic and the switch to online shopping hit physical sales.
Helen Dickinson, the BRC’s chief executive, said: “July continued to see strong sales, although growth has started to slow. The lifting of restrictions did not bring the anticipated in-store boost, with the wet weather leaving consumers reluctant to visit shopping destinations.
“The vacancy rate is continuing to rise. Many shops and local communities have been battered by the pandemic, with many high streets in need of further investment.”
The monthly survey, conducted with KPMG, showed non-food sales up by 25% in the three months to July and food sales 2.9% higher. Fashion outlets, hit hard during lockdowns, returned to pre-crisis levels as weddings and other social events were reinstated but tougher times lie ahead as rising prices increase costs and curb consumer spending.
Paul Martin, KPMG’s UK retail head, said: “Over the coming months the health of the sector is expected to grow at a much slower rate as retailers face increasing challenges on a number of fronts. Staffing pressures, increases in commodity and component costs, rising inflation eating into households’ spending power and stalling consumer confidence could lead to a slowdown in retail sector growth as we head into autumn.”
