Retail sales fall in August, but still up on pre-pandemic levels, says ONS

Food store sales fell even further, at 1.2%, which the ONS attributed partly to the easing of hospitality restrictions and people increasing spending in restaurants and bars.

The total retail sales figures were unchanged from a year ago, said the ONS and 4.6% higher than pre-coronavirus levels in February 2020.

Paul Martin, head of retail at accountant KPMG, said: “Against a precarious economic backdrop, the retail recovery is showing signs of slowing and growth across the sector is expected at a more muted rate as retailers face increasing challenges on a number of fronts.

“Inflation is expected to accelerate putting pressure on household spending, staffing pressures remain and supply chain issues are being widely reported, with raw material shortages and getting product into the UK and onto the shelves causing concern.”

Karen Johnson, head of retail and wholesale at Barclays corporate banking, said: “Whilst last month saw record temperatures across many parts of the UK, grocery spending cooled in August as the public chose dining out over evenings at home.

“Fortunately for UK retail, clothing sales helped turn up the heat – with summer holidays, back to school and return to office all fuelling spending over this period.

“Looking ahead, we can expect to see sales figures return to some kind of normality as the nation settles itself into the post-lockdown world.

“It has been great to see consumer confidence remaining strong, and now the whole sector will be hoping that supply issues won’t pose too much of a challenge for meeting demand in the coming months.”