Retail sales slump 1.6% in August – far worse than expected – as Britons cut back to deal with spiralling inflation
- Retail sales volumes were down 16 per cent in August, far worse than expected
- All sectors suffered as consumers struggled with spiralling inflation pressures
- The value of sales was also down although still well above pre-pandemic level
Retail sales slumped by 1.6 per cent in August as Britons struggled to deal with spiralling inflation.
The fall in volumes was far bigger than the 0.5 per cent that had been pencilled in by analysts, and will raise fresh fears about the UK economy.
All sectors – food stores, non-food stores, online and and fuel – saw a reduction in purchases. There was also a 1.7 per cent dip in the value of the goods bought.
Retail volumes are now just 0.5 per cent above the pre-pandemic level in February 2020, while the value is 13.7 higher – reflecting the huge inflationary pressures.
The fall in volumes was far bigger than the 0.5 per cent that had been pencilled in by analysts, and will raise fresh fears about the UK economy
The Office for National Statistics highlighted that there had been a downward trend since restrictions on hospitality businesses were lifted around a year ago.
Lynda Petherick, Retail Lead at Accenture, said: ‘With a difficult winter to come, it will come as a worry to retailers that shoppers have already reigned in their spending despite the hot summer.
‘The sombre atmosphere in the UK this week and news of slow economic growth will be adding to the sense of concern among retailers as the weather gets colder.
‘Rising costs remain front of mind, and brands will be doing all they can to minimise outgoings and protect their margins for the months ahead.
‘To avoid a winter of discontent and beyond, technology will be crucial to helping retailers find a careful balance between product, price and experience to keep customers coming back for more.’
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