Retail sales, mainly of food and drink, rose in the UK between May and June. The boost came from people watching the Euro 2020 football tournament.
There was a drop of sales in May, but official figures show it then rose 0.5% month-on-month. The Office for National Statistics (ONS) say the growth was in “food and drink sales, boosted by football fans across Britain enjoying the Euros”.
Total retail sales in June were 9.5% higher than before the pandemic in February 2020. The largest growth came from food shops, with an increase of 4.2%.
May saw a drop in supermarket sales as consumers opted to eat out following the lifting of some Covid restrictions in the hospitality sector.
Feedback from retailers suggests “sales were positively boosted in June by the start of the Euro 2020 football championship”. Meanwhile, non-food sales declined by 1.7% during those same months. There was a sharp decrease in demand for items like clothing and furniture.
While sales of fuel are still 1.2% below pre-pandemic levels, petrol and diesel sales increased by 2.3% “as people continued to increase their amount of travel”.
Retail figures for June are promising as the total was better than the 0.1% expected drop. This gives retailers hope that June marked the beginning of the turnaround they are waiting for.
We now have to see how the gradual unlocking of society impacts the whole of the UK. On the one hand, lifting restrictions and the return of commuters back to city centre offices is a good thing for the sector. However, many businesses are reporting staff shortages and supply issues due to workers self-isolating, just when demand is likely to peak.
Online shopping
Many consumers are continuing with online shopping, but the amount spent between May and June dropped by 4.7%. The only retail sector that did not fall online was clothing.
Online spend is falling each month, for the last four months. The overall proportion of retail spending online fell from 28.4% in May to 26.7%. Shoppers are returning to physical stores now that restrictions are easing. Online shopping is no longer a necessity for some as it was throughout the pandemic.
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