You are here: Home - Household Bills - News -

Retail sales stay firm, in spite of high street gloom

Written by:
Retail sales stayed firm in August, in the face of rising inflation.

In particular, sales of household goods were robust, rising 4.5%. Other non-food items saw a rise of 2.8%. In contrast, food sales dropped by 0.6% and clothing fell by 1.9%, although both had been strong in July.

Office for National Statistics senior statistician, Rhian Murphy, said: “Retail sales remained strong in the three months to August, with continued growth across all sectors. Food and household goods stores particularly benefitted from the warm weather when compared with last summer.

“The figures for the month of August were a little more mixed, with food sales falling after strong sales earlier in the summer and clothing sales declining following a strong July, as suggested by clothing retailers. On the other hand, household goods grew strongly.”

However, the gloom in certain parts of the high street continued. The stronger figures could do little for high street bicycle chain Evans Cycles, which is looking for a new buyer. Fashion and homeware retailer Orla Kiely ceased trading on Monday after its parent company, Kiely Rowan collapsed. The retailer’s stores on the King’s Road and Seven Dials in London, and Kildare in Ireland, have closed, along with its website.

Ian Forrest, investment research analyst at The Share Centre, says: “Retail sales in August were better than expected with a 0.3% rise month-on-month compared to expectations of a slight fall. That was especially notable given that inflation rose by more than expected to 2.7% as reported yesterday. The picture for retail sales was mixed with food and clothing sales down while household goods saw good growth.

“The ONS today reported that in the three months to August sales were up in all sectors with volumes rising 3.4% on the previous year. The World Cup and warm weather during the summer led to an increase in the sale of televisions and food sales. Online spending once again was strong and reached a record proportion of 18.2% of all spending. The good figures will provide a welcome boost to the retail sector, especially high street retailers who have been struggling with increased costs in recent times.”



There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Investors flee emerging markets

In spite of their potential for stronger long-term growth, investors are turning their back on emerging markets as concerns over...