Deloitte comments on ONS retail sales has been saved
Deloitte comments on ONS retail sales
22 July 2022
Commenting on today’s ONS retail sales figures, Kelly Miely, retail partner at Deloitte, said:
“June’s bank holiday weekend and the return of summer events did not give the retail sector the boost it was hoping for. 40-year high inflation continued to dent consumer spending power resulting in retail sales volumes falling by -0.1% for the second consecutive month.
“Street parties and the start of barbecue season benefited food sales volumes, which grew by 3.1% compared to May. Elsewhere, many consumers are cutting down on non-essentials, and despite wedding and holiday season now being in full swing, clothing sales volumes fell -4.7%. Spending on large ticket items such as furniture also fell -3.7%, bringing down non-food sales volumes by -0.7%.
“However, ongoing cost of living concerns are giving many consumers no choice but to allocate their spending on essentials only, such as groceries, with little or no wriggle room to spend on luxuries. For those consumers who are looking to reduce their supermarket spend, many are turning to shopping ‘little and often’ to curb single, large bills at the checkout.
Twice as many consumers look for cheaper brands than a year ago
“Deloitte’s latest Consumer Tracker found that whilst most consumers (56%) have seen their expenditure increase in the last quarter due to rising prices, a growing number of consumers (27%) are actually spending less. Of these, 58% say it is in an effort to save money. 45% are switching to cheaper brands or stores; twice as many as a year ago (19%).
Discounts to deepen?
“Given the disruption from COVID-19, many retailers had anticipated ongoing supply chain issues, and adapting to ensure shelves were well stocked. However, with consumers becoming more cost conscious, some retailers may have no choice but to turn to discounting over the next quarter as they look to shift excess inventory ahead of the arrival of new season lines, giving consumers a chance to take advantage of some good deals along the way.”
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.
The information contained in this press release is correct at the time of going to press.
For more information, please visit www.deloitte.co.uk.