UK retail sales rebounds 0.7% m/m in July, a big beat on expectations

The UK retail sales rebounded 0.7% over the month in July, coming in way above the market expectations while core retail sales stripping the auto motor fuel sales also rose 0.9% m/m.

On an annualized basis, the UK retail sales rose 3.5% in July versus 3.0% expected while the core retail sales rose 3.7% in the reported month versus 2.8% previous and 2.9% expectations.

Main Points:

“The quantity bought in non-store retailing showed strong growth both on the month and year-on-year at 4.9% and 16.9% respectively.

Feedback from non-store retailers suggested that online promotions further encouraged sales, while non-food stores reported a reduction in footfall in July 2018.

Spending online continued to increase to reach a new record proportion of all retailing at 18.2% in July 2018; with strong growth in department stores also reaching a record proportion at 18.2%.”

Commenting on today’s retail sales figures, Office for National Statistics (ONS) Senior statistician, Rhian Murphy said:

“Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine.”