Discounting pushes August retail sales to highest level since pandemic began
Retail sales made a slight recovery last month to the highest level since the outbreak of the coronavirus pandemic as brands slashed prices ahead of the Bank Holiday weekend.
In-store like-for-like sales were down 28.1 per cent in August, from a base of minus 0.1 in the same month last year, which was the best result since February.
However experts said the boost could be attributed to heavy discounting in the run up to the August Bank Holiday.
In-store sales were negative for two out of three sectors in August, with homeware the only sector to record a positive result.
Fashion sales at physical stores plunged 32.5 per cent, marking the six consecutive month of negative results.
Meanwhile, lifestyle sales were down 29.4 per cent, according to accountancy firm BDO.
In-store homeware sales jumped 0.7 per cent, but failed to offset the base of minus 0.8 per cent recorded in August last year.
Non-store sales boomed in August, rising 72 per cent from a base of 18.6 per cent, as the shift to online shopping – accelerated by the pandemic – continued.
BDO head of retail and wholesales Sophie Michael said: “‘While the last week of August provided a moment of positivity, the reality is that this was largely a result of heavy discounting.
“As we enter the largest recession on record, the outlook remains unsettled with constrained family finances and job market uncertainty continuing to impact negatively on discretionary spend.’
‘Coronavirus-related job losses are predicted to pass one million this month, having already decimated the retail sector which represents 10 per cent of the UK workforce.
“Job losses in retail grew at the fastest rate in more than a decade in the year to August and as we approach the end of the Government’s Job Retention Scheme, further job losses are anticipated.
“The Government’s support scheme has been a lifeline but further support from the Chancellor is vital to help the retail sector recover out of this pandemic.”