Deloitte comments on ONS retail sales has been saved
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Deloitte comments on ONS retail sales
20 May 2022
Commenting on today’s ONS retail sales figures, Oliver Vernon-Harcourt, head of retail at Deloitte, said:
Despite expectations, the arrival of April’s warmer weather and the first bank holiday barbecues of the year have fired up retail sales, as both values and volumes rose by 1.9% and 1.4% respectively, driven by food sales and the first Easter free of COVID-19 restrictions.
Strong clothing sales indicate consumer demand to refresh wardrobes, and the return of large gatherings drove higher food and alcohol sales. For those consumers that can afford it – typically those in higher income households – spending has accelerated in areas such as leisure, eating out and holiday bookings.
However, just because overall spending is rising doesn’t mean that this is true for everyone and higher income households are likely to account for a disproportionate share of spending. Over half of UK consumers have already seen an increase in their overall personal expenditure since the start of the year and, with inflation hitting a 40-year high just this week, spending power could weaken further for many in the months ahead.
Online sales rise for first time in 2022
Following months of slowdown, the share of online sales grew for the first time since January, rising to 27%, up from 26% in March. With all remaining COVID-19 restrictions now lifted, this may point to a new post-pandemic baseline for online sales.
“We will continue to see retailers seek new ways of blending the digital experience in-store this year through digital products and services.”
ENDS
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