Retail sales drop in July for first time since shop reopenings

// UK retail sales dropped in July to the weakest performance since store reopenings in April
// This was partly driven by a decline in food store sales
// The figures come significantly below the expectations of analysts

New research has shown that UK retail sales dropped in July to the weakest performance since shops reopened in April.

Retail sales volumes dropped by 2.5 per cent between June and July but remain 5.8 per cent ahead of pre-pandemic levels, according to the ONS.

This was partly driven by a decline in food store sales which were impacted by customers returning to hospitality venues and the end of the Euro 2020 football tournament.


READ MORE: Retail sales boost expected in upcoming back-to-school season, study suggests


The figures come significantly below the expectations of analysts, who had forecast an increase of 0.2 per cent for the month.

Food store sales slipped by 1.5 per cent for the month, while non-food stores, such as fashion chains, reported a 4.4 per cent decline in volumes.

“Food sales fell back as further lifting of hospitality restrictions meant consumers had more opportunities to spend outside retail,” ONS deputy national statistician for economic statistics, Jonathan Athow said.

“Heavy rainfall at the start of July hit fuel sales, which dipped for the first time since February.”

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