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UK retail sees best quarter on record as lockdown eases

By Huw Hughes

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Retail

Image: Pexels

UK retail saw its best growth on record in the second quarter of the year as the easing of lockdown restrictions encouraged a release of pent-up demand built up over previous lockdowns.

Retail sales surged by 28.4 percent compared to the same month last year and by 10.4 percent compared to pre-Covid 2019 levels, according to the latest BRC-KPMG figures.

Total sales increased by 13.1 percent in June compared to 2019 levels, against a decline of 1.3 percent in June 2019, outstripping the three-month average growth of 10.4 percent.

On a like-for-like basis, retail sales increased 17 percent from June 2019, when they had decreased 1.6 percent from the previous year.

Shoppers prep for summer staycations

Sales were bolstered by people splashing out on staycations or cheaper UK-based holidays, with fashion and footwear sales performing well as people made the most of the sun in the first half of June.

But despite the “exceptional” growth, BRC chief executive Helen Dickinson warned that UK retail is “still facing strong headwinds with many retailers still making up for ground lost during the previous lockdowns”.

“City centre retailers continue to suffer low footfall and spending as commuters and international tourist numbers remained well below pre-pandemic levels,” she said. “Consumer comfort with the next stage of the roadmap will be key to the ongoing success of retail.”

The government announced this week it was moving forward with plans to further relax Covid restrictions on July 19, which includes the lifting of the face covering mandate in stores.

“Many customers are looking forward to a return to a more normal shopping experience, while others may be discouraged by the change in face covering rules,” Dickinson said. “The government will need to reassure the public on safety, while pushing forward with its hugely successful vaccination programme.”

BRC