Retail sales drop for the fourth month in a row
Retail sales dropped in August for the fourth consecutive month as fewer people bought groceries and returned to restaurants and pubs, according to official figures.
TheOfficeforNationalStatistics (ONS) said retail sales volumes dropped by 0.9% last month – following a 2.8% fall in July – but remained 4.6% up on pre-pandemic levels.
The drop in August came as a surprise to analysts, who had forecast a 0.7% increase and it was the first time since 1996 that retail sales have dropped for four months in a row.
Jonathan Athow, ONS deputy national statistician for economic statistics, said: "Sales fell again in August, though not nearly as much as in July, and, overall, remained above their pre-pandemic level.
"Other data suggest that the drop in food stores' sales is linked to an increase in eating out following the lifting of coronavirus restrictions.
"Meanwhile, motor fuel sales increased on the month as people ventured out more, but they remained below pre-pandemic levels."
The figures show food store sales slipped by 1.2% for the month – as separate data from Open Table showed that restaurant reservations picked up last month while credit card providers saw a rebound in social spending.
Non-food stores reported a 1% decline in sales volumes – which was largely driven by department stores, which saw a 3.7% plunge for the month.
Motor fuel sales volumes rose by 1.5% for the month as people continued to increase their amount of travel, although this remains below pre-pandemic levels.