😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

UK retailers report record Q2 growth as shops reopen

Published 07/12/2021, 07:09 PM
Updated 07/12/2021, 07:10 PM
© Reuters. FILE PHOTO: Shoppers cross the road in Oxford Street, in London, Britain August 14, 2016.  REUTERS/Peter Nicholls

By David Milliken

LONDON (Reuters) - British retailers reported a record annual increase in sales in the three months to the end of June, although growth was flattered by widespread store closures a year earlier due to the coronavirus pandemic.

The British Retail Consortium - members of which tend to be large high-street chains and supermarkets - said on Tuesday that sales in the second quarter of 2021 were 28.4% higher than a year earlier and 10.4% higher than two years before.

The year-on-year increase was the largest since the BRC's records began in 1995.

"The gradual unlocking of the UK economy encouraged a release of pent-up demand," BRC chief executive Helen Dickinson said.

While supermarkets have been trading throughout the pandemic, 'non-essential' retailers such as clothing stores were closed for most of this year, before reopening in England on April 12. Dates varied in other parts of the United Kingdom.

Total sales in June alone were up 13.1% on two years earlier, compared with growth of 10.0% in May. Versus last year, sales were 10.4% higher on a total basis and 6.7% higher on a like-for-like basis which adjusts for changes in floorspace.

"Fashion and footwear did well while the sun was out in the first half of June, while the start of Euro 2020 provided a boost for TVs, snack food and beer," Dickinson said.

England's men's soccer team enjoyed a successful run in the Euro 2020 international tournament before losing in the final against Italy on Sunday.

Data released on Monday for early July showed underwhelming numbers of shoppers during the tournament's final week.

Payments processor Barclaycard said its measure of consumer spending was also up strongly in June and stood 11.1% higher than in June 2019. In May, the same measure - which is based on almost half of British credit and debit card payments - showed spending was up 7.6%.

© Reuters. FILE PHOTO: Shoppers cross the road in Oxford Street, in London, Britain August 14, 2016.  REUTERS/Peter Nicholls

Spending at pubs and bars soared by 38% compared with two years ago, the biggest rise since September, and food and drink specialist stores such as off-licences saw sales jump by 76%.

"June saw Brits flock back to pubs, bars and beer gardens to watch the football and tennis on the big screens, as the heatwave early in the month encouraged many of us to get out in the sunshine and socialise," Barclaycard's head of consumer products, Raheel Ahmed, said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.