- Retail sales up 1% in August as temperatures soared
- Supermarkets enjoyed a significant boost as food sales jumped 1.8%
- Clothing sales lifted as consumers took advantage of back-to-school sales
Danni Hewson, AJ Bell head of financial analysis, comments on the latest retail sales figures:
“It’s no secret that people feel happier when the sun shines and that happiness tends to impact their spending habits. Warm summer evenings are the perfect backdrop for a BBQ with friends and family, requiring a quick trip to the supermarket to stock up on burgers, buns and beer.
“Food sales provided a substantial boost to retailers in August with fragile consumer confidence enjoying a rate cut hug which offset some of the political messaging that’s since eroded some positivity.
“Ever since lockdowns blighted people’s lives, they have put experiences ahead of stuff and food often plays a vital role in creating those memorable events that will be cherished as nights draw in and summer excesses fade into memory.
“There’s been no shortage of evidence that unseasonably cool and wet weather at the start of the summer stopped many of us from splurging on bright summer outfits but as Next reported yesterday a change in the weather created a change in mood.
“A late season splurge was helped along by back-to-school sales with many parents finding uniforms on offer well before discounts are usually employed to sell off lingering stock.
“Consumers are still being prudent; they know energy prices are set to rise in the autumn and they’re nervous about what the new government’s budget might have in store. Cooling inflation has helped persuade people to spend a little more, delivering sales volumes at the highest levels in two years. The question is how long can this positive momentum last?
“September has enjoyed a similarly decent spell of good weather but the latest GFK consumer confidence survey suggests a bone deep chill settling into the consumer psyche. We’ve taken to heart warnings that things will get worse before they get better, but the upcoming Budget needs to show the path to positivity isn’t completely riven with potholes.”
