Sep 21, 2020
3 min

August 2020 UK Retail Sales: Rebound Continues, Underpinned by Online Sales and Big-Ticket Sectors

Insight Report
Insight Reports Gated Insight Reports

Nitheesh NH
In August, UK retail sales grew more strongly than pre-pandemic levels. Total sales grew 4.1%, supported by reported substantial year-over-year increases in big-ticket sectors (such as electronics and home improvement) and an uptick at grocery stores. [caption id="attachment_116407" align="aligncenter" width="700"]Total UK Retail Sales (ex Automotive Fuel and Unadjusted): YoY % Change Data in this report are not seasonally adjusted
Source: ONS/Coresight Research
[/caption]   Retail Sales Growth by Sector Reported sales grew significantly at DIY, electrical-goods and floor-covering specialists—collectively showing continued strong demand for big-ticket categories. Small retailers once again drove total sales growth, recording a 9.7% increase in August. DIY and hardware stores maintained their growth momentum, surging 19.3% in August, compared to a 10.1% increase in July. Health and beauty saw a modest increase, growing by 1.6% in August, compared to 0.4% in July. Sales at grocery stores picked up again after reporting a sharp growth deceleration in July. This was despite the government-funded “Eat Out To Help Out” scheme offering discounted dine-out options in August. Growth at clothing and footwear stores remained negative in August, although the sector has seen a sequential improvement of around 10 percentage points each month. The department stores/mixed-goods sector saw a modest improvement. This sector comprises full-range department stores such as John Lewis and variety-store retailers such as Argos and B&M Bargains; the former segment is likely to be the principal drag on this sector’s growth, given its reliance on the weak apparel category and observed low traffic levels. Online-only growth remained at elevated levels, but it is beginning to ease, with the channel expanding 34.6% in August compared to 37% in July. [caption id="attachment_116408" align="aligncenter" width="700"]UK Retail Sales, by Sector: YoY % Change *A small retailer is defined as one with fewer than 100 employees or with revenues of £60 million or less per year; all others are large retailers
**A relatively fragmented sector, in which reported figures have traditionally been volatile
Source: ONS
[/caption]   Online Retail Sales Account for 26.6% of All Retail Sales Total online retail sales were up 52.7% year over year in August, compared to 53.8% in July. At food retailers, Internet sales were up 91.2% in August, versus 109.3% in July. In August, Internet sales were up 60.0% at store-based nonfood retailers, versus 59.4% in July, supported by strong sales at household-goods retailers, which were up 83.5%. Online sales were up 38.8% at nonstore retailers. Online retail sales as a percentage of overall retail sales is trending down after lockdown restrictions were eased. Online sales accounted for 26.6% of all retail sales in August, down from 28% in July. We chart the trend for all retail and the store-based food and nonfood sectors below. [caption id="attachment_116409" align="aligncenter" width="700"]Online Retail Sales as % of Total Retail Sales “Food” and “Nonfood” data are for store-based sectors; “All Retail” total includes nonstore retail, which is not charted
Source: ONS
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