Food store sales remain higher than their pre-pandemic level
Retail sales are down by 1.4% between April and May as UK consumers spent their money at restaurants and bars over supermarkets.
The Office for National Statistics (ONS) revealed that sales were down especially at food shops as people made the most of the easing of lockdown restrictions by eating out with friends.
On the other hand, more people were buying outdoor furniture as sales at non-food shops increased. The number of online sales as a proportion of overall sales fell as consumers flocked back to physical stores.
The ONS confirmed it is the third consecutive month that online sales are down, however it added they are still over 50% above the levels seen in February, before the pandemic.
Reuters reported that its poll of economists on average predicted a 1.6% monthly increase in retail sales, with only three out of 19 predicting a fall.
Food store saw a 5.7% fall in sales, with Tesco reporting a slowdown in growth of its underlying sales during Q1.
“Anecdotal evidence suggests the easing of hospitality restrictions had an impact on sales as people returned to eating and drinking at locations such as restaurants and bars,” the ONS said.
However, despite the fall, food store sales remain higher than their pre-pandemic level, as sales during May this year were 2.6% higher than in February 2020.
“Feedback from retailers suggested that sales were negatively affected in May by both the reopening of all retail sectors and the relaxation of hospitality restrictions, with specialist retailers of alcoholic drinks and tobacco reporting a monthly decline of 8.4%,” the ONS added.
