Retail headwinds loom on the horizon

The latest ONS Retail Sales Index figures showed a 3.7% year-on-year increase in overall sales (non-seasonally adjusted retail sales excluding fuel: J3L2).

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “The fifth consecutive month of rising sales is a testament to the perseverance and innovation of retailers who continue to constantly adapt to the changing Covid landscape."

"Unfortunately, the lifting of many social restrictions in July did not bring about the anticipated boost in sales compared with the previous months, and the wet weather appeared to have dampened consumer enthusiasm for shopping. Nonetheless, food sales returned to growth and even clothing and footwear saw some improvement as weddings and other social events returned to the summer calendar."

Dickinson added: “Retailers are keen to see growth continue throughout the second half of 2021, yet there are headwinds looming on the horizon. Challenges in global shipping and the shortage of UK lorry drivers are creating some disruption for consumers and additional costs for retailers.

"In October, the UK will introduce new checks on products of animal origin being imported from the EU, adding more costs to the system. Government must take action on these issues, increasing the number of HGV driving tests taking place and ensuring new EU-GB documentation checks are as light touch as possible.”