X

Food sales sizzled in June as the Euros took over screens, while spending wanes in July

  •  Retail sales volumes rose 0.5% between May and June 2021.
  •  Food store volumes rose 4.2% compared to May, as spending around the Euros boosted trade.
  • Sales of clothing fell by 4.8% and sales in household goods stores was down 10.9%.
  • Retail sales volumes were 12.2% higher in the three months to the end of June 2021, compared to the previous three months.
  • Non-food stores reported a fall of 1.7% in sales volumes in June 2021 compared to May 2021.
  • Retail sales volumes were up 9.5% when compared with their pre-coronavirus (COVID-19) pandemic February 2020 levels.
  • The share of spending online decreased to 26.7% in June 2021, down from 28.4% in May 2021, but remains higher than before the pandemic (19.9%).
  • High street footfall in the week ending July 17th saw a weekly increase of 3%, its first rise since the start of June

The ONS has released monthly retail sales data for June and the latest research on economic activity, with indications that high street footfall has risen in July

Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown:

“The Euros kicked off a spell of celebratory spending as national teams progressed through the tournament, fans splashed the cash on food and alcohol. Beers, pizza and BBQ treats flew off the shelves, boosting spending in food stores by 4.2%. That marked a turnaround compared to May when the re-opening of indoor dining led to a decline in retail food sales. The fickle nature of our spending patterns has continued with spending on clothing falling out of fashion again, with volumes down by 4.8%. In many homes it seems the love of football overtook passion for other hobbies in June. With eyes glued to screens for matches, the love affair with DIY seems to have waned. Household goods stores saw a fall in sales volumes of 10.9% in June although supply chain problems causing a shortage of popular goods on shelves may also be behind the drop compared to May.

Spending overall though on furniture and items for the home is still 15.8% above their pre-pandemic levels, indicating plenty of people are doing up their pads, partly because they still spend so much more time at home.

A new ethical trend of shopping appears to be developing with a rise in spending in charity shops accounting for a large part of the 8.6% growth in other non-food stores. With so many people clearing out pre-loved items, shoppers are going bargain hunting in stores, attracted by the triple benefits of contributing to a good cause, cutting down on waste and saving pounds.

The novelty of browsing in real instead of virtual stores hasn’t yet worn off. The amount of money we spent online fell in June by 4.7% compared with May, with shopping now entwined in our social lives once more.

Other research from the ONS this week showed that in July shoppers have continued to cool down from the hot pace of spending the sector saw in the spring. In the week to 15 July 2021, spending on debit and credit cards fell by 5 percentage points from the previous week, coming in at 92% of the level in February 2020. A fall in social spending is partly behind the drop, with people splashing less cash on restaurants, hotels and air travel.

People are clearly fed up with playing the traffic light guessing game and many have ditched plans for holidays abroad.

Delayable spending on goods like clothing and cars is also at 85% of the level in February 2020, indicating caution is once again becoming the name of the game, as concerns about the spread of new variants rise.

Data indicates that fortunes are looking up a little for the high street as more customers return, partly as football fever has subsided. The latest ONS economic report highlights Springboard research which shows that high street footfall in the week ending July 17th saw a weekly increase of 3%, its first rise since the beginning of June 2021, creeping back up to 70% of pre-pandemic levels. But retail parks remain the most popular location to splash the cash. Footfall has bounced back in out of town centres to 99% of levels witnessed before the crisis hit.’’

Featured News

This Week’s Most Read

  • Is value investing coming back? For some of us it was never gone

    Reports of value investing’s demise have been greatly exaggerated… By Abdulaziz Alnaim, Portfolio Manager, Mayar Fund If I was given a dollar for every time someone told me that value

  • Is there a bull in the China shop?

    We bring you the views of two asset managers on China’s recent tightening of regulations. Mark Martyrossian, the CEO at Aubrey Capital Management, said: “The carnage wrought in several sectors

  • Brewin Dolphin grows investment solutions team

    Wealth manager Brewin Dolphin has grown its investment solutions team with the appointment of three portfolio analysts. The hires support the company’s successful build-out of its investment propositions for advisers,

  • Welcome to the Wealth DFM Podcast

    Wealth DFM Magazine is delighted to launch our latest podcast. In this insightful episode Sue Whitbread, Editor of Wealth DFM Magazine, sits down with two of Legal and General Investment

  • M&G Investments: Why the Bank of England should lead the tightening cycle

    By Richard Woolnough, M&G Investments As bond investors we constantly focus on economic growth, inflation, and interest rates. In order to understand the potential moves in the above we focus

  • Brooks Macdonald full year results show strong strategic progress

    Brooks Macdonald Group plc today announces its audited results for the year ended 30 June 2021. Financial highlights Group FUM reached record level of £16.5 billion (up 20.3% on FY20)

  • The new reality: every client is an ESG client

    In Invesco’s recent survey, nearly four out of five (79%) investors declared that sustainability is important to how they invest. More than half (52%) of those not already investing sustainably

  • Why companies in India are increasing their focus on sustainability

    By Vinay Agarwal, director and portfolio manager at FSSA Investment Managers, part of First Sentier Investors. In our view, several factors make India an attractive market to invest in over

  • Supply chain problems hit Primark as it hints of a new digital future

    Hargreaves Lansdown’s Susannah Streeter discusses the outlook for fashion chain Primark. Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, comments: “For now Primark is still firing on all

Wealth DFM