UK retail sales growth slowed in August, but clothing industry remained strong

UK retail sales growth began to slow gradually in August as demand weakened from consumer revenge spending following the lockdown .

According to the latest retail sales monitor report from the British Retail Consortium (BRC) and KPMG , retail sales in the UK grew by 3% in August , but this was lower than the 3.9% growth in the same period last year . At the same time, as consumers were able to return to physical stores , online sales in the UK fell by 4.6% in August, compared with a growth rate of 42.4% in August last year .

Helen Dickinson, chief executive of the British Retail Consortium , said that compared with the rapid growth in previous months, the growth rate of retail sales in August slowed down, but it was still higher than the growth level before the new crown pandemic. Consumers can return to stores to shop, and the increase in consumer confidence and customer traffic is leading to an increase in in-store sales.

Rising commodity prices are becoming a concern for retailers and consumers. Due to the global supply chain crisis and labor and raw material shortages, retailers' operating costs are increasing, and some stores have been forced to raise commodity prices to ease the pressure.

A survey by Barclaycard shows that nearly two -thirds of consumers are worried about the price increase of daily necessities . Currently, the UK is facing accelerating inflation. According to the Bank of England's forecast , the inflation rate this year will reach a peak of 4%, which will have a certain impact on household spending.

Despite the slowdown in retail sales, the clothing industry is still performing strongly, especially in the formal wear sector. As the epidemic prevention and control measures are relaxed, the wedding season in the UK is approaching, and people need new clothes to attend social events such as weddings. At the same time, the return to work trend is also driving workers returning to the office to buy new formal wear.

In addition to clothing, consumers' spending on leisure and entertainment will also increase. According to Barclaycard data, compared with the same period in 2019, consumer spending on leisure and entertainment in August 2021 increased by 15.4%, higher than 11.6% in July , of which theater, festival and theme park ticket spending accounted for 24.2% of total spending.

As the epidemic develops, consumers' shopping preferences are also changing . Sellers in the UK market can learn more about relevant information and combine current trends to provide British consumers with more products that meet their needs.

UK Market

Retail

Clothing Industry