PwC Comments on June 2021 ONS retail sales figures

23/07/21

Commenting on the Office of National Statistics retail sales figures for June 2021

Lisa Hooker, consumer markets leader at PwC, said:

“British consumers have continued to drive strong retail demand in June, with a 1.4% increase in sales excluding fuel vs. May, and a 12.1% increase compared with the last normal month before the pandemic - last February.

“The first full month of reopening for indoor hospitality was always going to be make or break for the retail sector, and we’ve seen both increased footfall for the high street, with online sales at their lowest level (26.7%) since the start of the pandemic, and, perhaps surprisingly, a boom in demand for grocery.

“The combination of both food and drink sales to supporters celebrating the home teams’ successes at the Euros and record high consumer sentiment levels - according to PwC’s latest survey - seem to have particularly benefited June’s results.

“However, headline growth masks declines in other non-food categories, with household goods sales suffering their first non-lockdown driven decline since the start of the pandemic, as people started to spend more time out of the home; and sales in the hardest-hit clothing category again slipping below pre-pandemic levels.

“So the post-pandemic retail recovery will likely remain fragile for the rest of the summer, as government support schemes begin to wind down, and the booming grocery sector sees operational and supply challenges from the current ‘pingdemic’.

“And while the summer heatwave may still be on the mind of consumers, retailers will already be well into their planning for the rest of the year, including the critical Christmas peak. They will be hoping the initial post-lockdown momentum and pent-up demand continues for the rest of 2021.”

 

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