UK retail sales for the second quarter of the year saw the best growth on record, with retailers enjoying a boost from customers holidaying domestically and Euro 2020.

Total sales increased 13.1% in June compared with the same period pre-pandemic, according to the latest BRC-KPMG retail sales monitor. This gain outstripped the 10% increase seen in retail sales during May and the 7.3% growth in April. 

 

Like-for-like sales in June grew 17% compared to the same period in 2019 – when sales decreased 3% from the previous year.

Online sales of non-food products increased 31.3% for the period, well up on 2019 comparisons, though below the three-month average of 40.3%, while the non-food online penetration rate decreased from 49.7% in June 2020 to 39.3%.

The BRC and KPMG said easing lockdown restrictions, combined with warmer weather and the Euro 2020 football tournament, helped drive pent-up customer demand. 

Fashion and footwear were singled out as well as barbeque food and alcohol sales for grocers. 

Between April and June, overall retail sales increased 10.4% on the same period in 2019 and 28.4% compared to 2020.

BRC chief executive Helen Dickinson said: “The second quarter of 2021 saw exceptional growth as the gradual unlocking of the UK economy encouraged a release of pent-up demand built up over previous lockdowns. In June, while growth in food sales begun to slow, non-food sales were bolstered by growing consumer confidence and the continued unleashing of consumer demand.

“With many people taking staycations or cheaper UK-based holidays, many have found they have a little extra to spend at the shops, with strong growth in-store in June. Fashion and footwear did well while the sun was out in the first half of June, while the start of Euro 2020 provided a boost for TVs, snack food and beer.

“Nonetheless, UK retail is still facing strong headwinds with many retailers still making up for ground lost during the previous lockdowns. City-centre retailers continue to suffer low footfall and spending as commuters and international tourist numbers remained well below pre-pandemic levels. Consumer comfort with the next stage of the roadmap will be key to the ongoing success of retail. Many customers are looking forward to a return to a more normal shopping experience, while others may be discouraged by the change in face-covering rules.

”The government will need to reassure the public on safety while pushing forward with its hugely successful vaccination programme. The public will also need to be understanding of one another during the easing of restrictions; there has been a big rise in violence and abuse against retail workers during the pandemic and colleagues cannot be put in the line of fire because of this change in policy.”