UK retail sales fell 0.9% in August for the fourth straight month, causing a full supply chain problem.
- The National Bureau of Statistics of China (ONS) said retail sales fell last month after a 2.8% decline in July.
- This is the first time since 1996 that retail sales have fallen for four consecutive months.
- In the two weeks leading up to August 22, about 6.5% of retailers said they couldn’t get the materials, goods, or services they needed.
UK retail sales fell 0.9%, contrary to expectations of a rise in August, new figures show.
The National Bureau of Statistics of China (ONS) said retail sales fell last month after a 2.8% decline in July.
The continuous decline was a surprise to analysts who expected a 0.7% rise in August. This is the first time since 1996 that retail sales have declined for the fourth straight month.
UK retail sales fell 0.9%, contrary to expectations of a rise in August, new figures show
Despite the pessimistic outlook, retail sales are 4.6% above pre-pandemic levels.
Regarding the newly released figures, Jonathan Athow, Deputy National Bureau of Statistics for Economic Statistics at ONS, said:
“Other data suggest that the decline in grocery store sales is associated with an increase in eating out following the lifting of coronavirus restrictions.
“During that time, as people went on more adventures, motor fuel sales increased in the month, but they remained below pre-pandemic levels.”
Looking at different sectors, grocery store sales fell 1.2% in a month, and many shoppers have returned to their pre-pandemic habits.
This is because credit card providers have highlighted a recovery in social spending, while restaurant bookings increased last month, according to OpenTable data.
Non-grocery sales, on the other hand, fell 1%, partly because department stores plummeted 3.7% in a month.
Motor fuel sales increased 1.5% this month as people continued to increase travel, which is below pre-pandemic levels.
Grocery store sales fell 1.2% in a month, and many shoppers have returned to their pre-pandemic habits.
ONS also emphasized that in the two weeks leading up to August 22, approximately 6.5% of retailers were unable to obtain the materials, goods or services they needed due to ongoing supply chain challenges. Did.
Department stores suffered the most, with 18.3% of these companies highlighting the problem, followed by clothing stores at 11.1%.
An additional 8.9% were able to get what they needed, but to do so they had to change suppliers or find alternative solutions.
Meanwhile, 22% of grocery stores reported the same problem.
Sarah Coles, a personal finance analyst at Hargreaves Lansdown, said these shortages are key to driving the declining trend across retailers.
In terms of shopping habits, the percentage of online retail sales increased to 27.1%, compared to 19.7% before the pandemic.
Looking at Erin Brookes, Managing Director of European Retail and Consumer Practices at Alvarez & Marsal, he said:
“It’s important to understand consumer demand and solidify a supply chain that is as strong, agile and responsive as the weakest links.
“Despite the turbulent times, companies need to ask themselves how to strengthen and diversify their supply chains, not only focusing on immediate issues, but also long-term consumer habits. We can guarantee our business in the future against such changes. ”
UK retail sales fell 0.9% in August for the fourth straight month
Source link UK retail sales fell 0.9% in August for the fourth straight month