UK retail sales for the month of July were the highest they have been since before the pandemic struck but the outlook remains grim for many categories.

Sales figures for July showed retailers enjoyed their best month overall since February, according to the Office for National Statistics, indicating pent up shopper demand. 

The value of retail sales increased 4.4% and the volume increased 3.6% compared to June, despite food sales – the biggest driver of retail sales during lockdown – falling in the month as bars, pubs and restaurants began to reopen. 

The ONS said in terms of sales volumes, seasonally adjusted, July 2020 was higher on a year-on-year basis than July 2019. 

Internet shopping, another strong performer during lockdown, saw its first monthly dip with many high street retail stores reopening. 

Ecommerce sales remained 50% higher than they were pre-pandemic and played a huge role in pushing overall retail sales to its current high watermark. 

However, despite the overall boost, some retail categories continued to suffer. The ONS said clothing and apparel sales remained 25.7% below pre-pandemic levels, even with an 11.7% uptick during July. 

The BRC said the retail sector had lost £1.6bn in sales per week during lockdown and the uptick in July was not enough to save many businesses still struggling. 

BRC chief executive Helen Dickinson added: “The latest ONS sales results mask a crisis underway in some parts of the retail industry. While food and online have shown growth, the hustle and bustle of shoppers and workers has yet to return to major town and city centres, continuing to impact sales significantly in those locations. In-store non-food sales were down over £1.6bn per week during lockdown and July’s uplift reported by the ONS doesn’t make up for that lost ground.

“The survival of many retail businesses hangs in the balance. Some retailers haven’t been able to pay their rent for the period where they were required to close for our national benefit and numbers of job losses and shop closures are rising. Unless another viable solution is found, the government should extend the moratorium on aggressive landlord debt enforcement beyond September.”

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