UK retailers not out of woods yet after joyful June

June saw a return to growth in UK retail sales, primarily driven by online as a result of coronavirus lockdown measures being eased and pent up demand being released, according to research by the BRC and KPMG.

Despite footfall still being well below pre-outbreak levels, average spend was up as consumers made the most of their occasional shopping trips. On a total basis, sales increased by 3.4% in June, against a decrease of 1.6% in June 2019. This was the highest since May 2018.

Computing, furniture and home improvement all did well as the public invested in home comforts and remote working. However, while categories such as food performed strongly, clothing, footwear, and health and beauty are still struggling.

All eyes are on next month now that pubs, restaurants and cafes have reopened, in the hope it brings a much needed boost to high streets and shopping centres.

“Though a month of growth is welcome news, retail is not out of the woods yet. The pandemic continues to pose huge challenges to the industry, with ongoing stores closures and job losses across the UK,” says Helen Dickinson, Chief Executive at British Retail Consortium.

“The reopening of shops is an important step on the road to recovery, but with months of rent building up, many shops will be forced to close unless action is taken before the next quarter rent day. The government must remain open to further action to boost consumer demand and should take steps to support with rent costs or the industry could suffer thousands of avoidable job losses.”

“Retailers won’t be picking up where they left off and months of reduced or no sales will threaten the survival of many. The pandemic has significantly changed consumer behaviour, it’s therefore vital that routes to market and ways of working are adapted with that fact in mind,” adds Paul Martin, UK Head of Retail at KPMG.