British retail sales bounce back almost to pre-lockdown levels – Gulf Today

British retail sales bounce back almost to pre-lockdown levels – Gulf Today

Shoppers take a break in front of a department store in London on Thursday. Associated Press



British retail sales jumped back almost to pre-coronavirus lockdown levels in June when non-essential stores in England reopened, giving a boost to beleaguered clothing stores.

Sales volumes in June leapt by 13.9% from May, above all forecasts in a Reuters poll of economists.

A 70% surge in clothing and footwear sales reversed much of their slump in recent months, though the sector remains one of the worst hit, with spending 35% below pre-pandemic levels.

Overall sales volumes rose to within 0.6% of February's level. Excluding fuel sales, hit by less commuting and other travel, volumes were 2.4% higher than in February.

Household goods stores also saw strong sales in June especially for furniture and DIY materials. Home improvement retailer Kingfisher this week forecast first-half underlying profit ahead of last year after exceptionally strong demand.

Retail sales represent only about a third of consumer spending, however, and other figures suggest people remain cautious about returning to places like bars and restaurants.

"The surge in retail sales volumes in June is not a sign that households' overall spending also is recovering fully and rapidly,“ said Samuel Tombs of Pantheon Macroeconomics.

Britain's