UK retail sales growth slows in August, but formalwear performs well

UK retail sales began to slow in August as pent-up demand to shop post-lockdown started to fade, but fashion retailers reported a strong performance, especially in the formalwear segment, new data reveals.

On a total basis, sales were up 3 percent last month against a growth of 3.9 percent in August last year, according to the latest BRC-KPMG retail sales monitor.

That was below the three-month average growth of 6.9 percent and the 12-month average growth of 10.3 percent.

On a like-for-like basis, retail sales in August increased 1.5 percent from August 2020, when they had increased 4.7 percent from the previous year. That was below the three-month average growth of 4.5 percent and the 12-month average growth of 10.9 percent.

Helen Dickinson, the chief executive of BRC, said the slowing of retail sales came as the post-lockdown pent-up demand for shopping softened.

“Nonetheless, we still saw growth above pre-pandemic levels, as people returned to stores in greater numbers,” she said in a release.

Formalwear boost in post-lockdown society

And there was good news for clothing retailers who reported a strong sales performance, with an increase in demand for formalwear driven by the return to office working and social events following the easing of lockdown restrictions.

“With wedding season in full swing and workers gradually returning to the office, formalwear was a strong performer,” Dickinson said.

“Additionally, the bank holiday weekend and back-to-school buzz contributed to a rise in non-food sales. While the online sales growth has begun to slow, it is still high when compared with pre-pandemic growth rates.

“This demonstrates how the pandemic has shifted the digital-physical shopping balance and increased the linkage between the two channels.”

Dickinson also urged the government to “reduce the burden of business rates” against a “precarious economic backdrop and retailers grappling with higher costs across the supply chain”.

If not, she warned the UK “will see the number of shuttered stores continue to rise and more jobs lost”.

“This will seriously impact communities right across the country, and those already most economically deprived will be hit the hardest, putting the levelling up agenda in jeopardy,” Dickinson said.