PwC comments on July 2021 ONS retail sales figures

Commenting on the Office of National Statistics retail sales figures for July 2021

Lisa Hooker, consumer markets leader at PwC, said: 

“While the headline rate of growth slowed in July compared with June, retail sales were still comfortably ahead of both last year and pre-pandemic levels.

“So, although July saw slightly lower footfall on high streets and Team GB’s Olympic success did not have the same effect on spending as the Euros the previous month, consumers continued to be encouraged by record sentiment levels and were keen to spend their lockdown savings, despite the slight unwinding of pent-up demand that has fuelled retail sales over the last three months.

“One positive for the high street is that online has stabilised at around 28% of retail sales, compared with over 36% earlier in the year, showing that shoppers are increasingly confident to venture out onto high streets and retail parks.

“As we look ahead to the rest of the summer, the outlook continues to be rosy, with staycations encouraging retail spending at home rather than abroad, even if the full re-opening of leisure might somewhat divert spending from shops to restaurants, pubs and other venues. This should give the sector some respite as it recovers from the last tumultuous year, and with the prospect of a wind-down in government support such as business rates relief.”