Shoppers defy economic gloom in September

Oct 23, 2020

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British retail sales have continued to increase for the fifth consecutive month, boosted by non-food items including DIY and garden supplies, according to official figures.

The Office for National Statistics (ONS) said retail sales volumes rose by 1.5% between August and September.

Spending on groceries remained high, but petrol sales were still down as motorists made fewer journeys.

Sales are now 5.5% higher than the pre-pandemic levels seen in February.

The three months to September saw the biggest quarterly increase on record, as retail sales volumes increased by 17.4% when compared with the previous three months.

Retail sales for quarter

However, analysts warned that the sales surge was unlikely to last, with many parts of the country returning to coronavirus lockdown.

“While food sales have done well in recent months as people have eaten out less, non-food store sales have now made a recovery at 1.7% above their February levels,” the ONS said.

“Home improvement sales continued to do well in September, with increased sales in household goods and garden items within ‘other’ non-food stores.”

Fuel lower

Fuel was the only main sector to remain below February’s pre-pandemic level, the ONS said, with volume sales 8.6% lower in September when compared with February 2020.

“As lockdown eased, we saw an increase in travel and the quantity of fuel bought. However, as many people remained working at home and with certain restrictions still in place, fuel sales were yet to fully recover,” it added.

Retail sales for month

Another positive contribution came from sales of spectacles and contact lenses, the ONS said.

“We gained feedback from opticians in this sector, suggesting that pent-up demand for eye tests and optical wear increased their sales when lockdown measures had eased,” it added.

The proportion of online sales was at 27.5%, compared with 20.1% reported in February.

“There’s no doubting that UK consumers have been doing their bit to boost the economy, following a quarter of record retail sales growth,” said Lynda Petherick, head of retail at Accenture UKI.

“There’s little time for retailers to gather breath, though, and they will already be wondering – or perhaps dreading – what lies ahead in Q4.

“This should be a time for excitement as the crucial ‘golden quarter’ for retail is now underway. However, with lockdown measures across the UK tightening by the day, retailers are braced for a difficult and unconventional end to the year.”

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