File photo of shoppers at a Tesco Extra supermarket in London
par Andy Bruce
LONDON (Archyde.com) – UK retail sales fell more than expected in August, bolstering recession fears as the cost-of-living crisis squeezes household purchasing power, data released on Friday showed. the National Statistics Office (ONS).
Retail sales fell 1.6% month on month in August, the steepest decline since December 2021, as economists polled by Archyde.com on average expected a drop of 0.5%.
This data adds to already existing concerns regarding buying behavior among UK consumers. Fashion retailers Primark and ASOS and online supermarket Ocado Retail all warned this month of the impact of inflation on their profits.
“With a tough winter ahead, retailers will be concerned that consumers have already curtailed their spending despite the summer heat,” said Lynda Petherick, head of retail at Accenture.
All major retail sectors – food stores, non-food stores, non-store retail and fuel – fell in the month for the first time since July 2021, when restrictions amid COVID -19 on hospitality have been lifted, the ONS said.
The mourning following the death of Queen Elizabeth II also poses another challenge for retailers, with widespread closures of businesses scheduled for Monday to mark the sovereign’s funeral.
“The somber atmosphere in the UK this week and news of slow economic growth will add to retailer’s sense of worry as the weather turns colder,” the analyst said.
Although inflation in Britain slowed slightly in August to 9.9% year on year, households are still facing soaring prices, especially those of energy, following the invasion of the Ukraine by Russia.
(With contributions by James Davey; French version Diana Mandiá, editing by Kate Entringer)
