UK DIY sales soar but clothing stores lag behind

British retail sales have continued to rise for the fourth month in a row, driven by spending on home goods and DIY, according to official figures.

The Office for National Statistics (ONS) said retail sales volumes increased 0.8% between July and August.

Sales are now 4% higher than in March, when a pandemic was declared.

“Retail sales continued to grow, further exceeding their pre-pandemic level,” the ONS said.

“Sales of home goods prospered as demand for home improvement continued, and despite a drop this month, online sales remained high,” said Jonathan Athow, deputy national statistician for economic statistics at the ONS.

Spending on household goods was particularly strong in August, with retailers reporting a 9.9% increase in household goods sales compared to pre-pandemic levels seen in February.

But August’s increase was less than the post-closing rebound seen in July, when retail sales volumes grew 3.6%.

High Street ‘under pressure’

Online sales also fell 2.5% in August compared to the previous month. But the strong growth in the number of customers shopping online during the pandemic has meant that sales were still 46.8% higher than in February.

Although online retailers may have seen higher clicks in recent months, many High Street stores are still struggling to attract customers after nationwide blocking measures were eased.

The volume of items sold in clothing stores, for example, was still 15.9% below February pre-pandemic levels in August.

“Clothing stores continued to struggle with sales still well below their February level. Overall, the shift to higher online sales means High Street remains under pressure,” Athow added.

Recovery of ‘mixed bag’

Helen Dickinson, executive director of the British Retail Consortium, said: “The recovery remains mixed, with high growth in online sales, while the inner city stores suffered as a result of the low influx.”

She added: “With more closings imminent, the government must provide clarity on the impact it will have on stores.

“Retailers have invested hundreds of millions in making stores safe for customers during the pandemic; this includes perspex displays, social distancing measures and additional hygiene measures. As such, retail remains a safe space for consumers, even under local closures. “

While some consumers returned to city centers in August to take advantage of the government’s Eat Out to Help Out program, industry figures have suggested those areas could struggle to reach pre-pandemic influx levels.

The paint is inside, the stilettos are outside.

They may be our purchase invoices, but the Chancellor and the Bank of England are examining them carefully. Since retail sales make up about a quarter of our economy, an important guide to how well the recovery is going. And the level of spending is back above where it was before the pandemic.

But it’s not just about how much, but why and what we’re spending on. Is it a case of not being able or wanting to?

A drop in clothing sales could reflect that fewer people are willing or able to navigate the High Street and are put off by the inability to try on before buying. If they think we are sitting with funds that we can spend, measures like VAT cuts can give us the push to get out and move the economy forward.

But less spending on extra treats can also reflect lower income or nerves about job prospects. And that means that we may need more support to save and create jobs; there are growing signs that we can hear more about that in the Budget.

In this tricky time, browsing through the nation’s shopping cart is more than just a nosy treat.

Entrepreneur and former Dragons’ Den star Theo Paphitis told the BBC’s Today show: “It’s really interesting as you see the confidence in the consumer to travel away from home. Our business outside of metropolitan areas. .. is noticeably stronger than inside.

“It’s the fact that people lose the confidence to stray too far from their normal habitat,” he said.

“It will never be the same again. I can’t really see our stores reaching the levels in metropolitan areas that they did before, because I think the genie is out of the bottle.”

Several High Street chains also announced job cuts in August as they struggled to shore up their businesses during the pandemic.

Sandwich chain Pret A Manger announced it would cut 3,000 jobs, or more than a third of its workforce, while department store chains Debenhams and M&S said they would cut 2,500 and 7,000 jobs.

Lisa Hooker, PwC’s consumer markets leader, said the lead-up to Christmas would be crucial for retailers.

“Retailers will hope that the fragile recovery is not derailed by more widespread lockdowns, rising unemployment or weakened consumer confidence,” he said.