July retail sales dampen hopes of quick high street recovery
Retail sales continued to fall in July despite the reopening of non-essential stores, dampening hopes of a quick bounce back on the high street.
Like-for-like sales in bricks and mortar stores fell 39.4 per cent in July compared to growth of 0.1 per cent in the same month last year.
Last month was also the six consecutive month of negative total like-for-like sales, which dipped 4.6 per cent, including both physical stores and online sales.
July was the first full month that non-essential stores were allowed to trade since February.
In-store like-for-like sales for lifestyle fell 35.4 per cent this month from an already poor base of minus 3 per cent last year.
After posting negative results in each week of the month, July recorded the sixth straight month of negative like-for-like sales for in-store lifestyle.
Fashion sank by 50 per cent in July, marking the fifth month of negative like-for-like sales for the sector.
However homeware sales rebounded as Brits settled in to spending more time at home, with like-for-like sales increasing 5.4 per cent.
Non-store sales remained high, increasing by 81.2 per cent in July from a good base of 20.5 per cent last year as consumer preference for online shopping continued.
BDO head of retail and wholesale Sophie Michael said: “July has marked yet another difficult month for struggling retailers.
“Despite initial optimism that the reopening of stores would see the high street bounce back, the July results tell a more difficult story.
“The reality is that footfall remains dismal, and some retailers opted for a more gradual approach to opening their estates last month while social distancing measures also continued to restrict capacity in-store.”
She added: “The high street is crying out for a confidence boost but with the full impact of coronavirus on the UK economy yet to be realised, uncertainty will prevail for the foreseeable future.”