Retail sales in the UK have continued to grow for the fourth consecutive month. According to new figures from the Office for National Statistics, retail sales grew by 0.8% between July and August. Sale figures are now 4% higher than February, before the pandemic. The governments Eat Out To Help Out scheme over August was likely to help boost retail sales, as it brought people back into town centres after lockdown. “Anecdotally, there were queues outside some restaurants in my local area, every Monday, Tuesday and Wednesday during August,” said Michael Hewson, chief market analyst at CMC Markets, ahead of the ONS data. “It would be a surprise therefore if we didn’t get a decent number for retail sales,” he added. Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the number of staycations was likely to also boost numbers. “Even if UK residents who stayed in the country did not go on holiday, they still will have purchased food and other goods that normally they would have bought abroad,” he said. The ONS said: “Retail sales continued to grow, further surpassing their pre-pandemic level.” Jonathan Athow, deputy national statistician for economic statistics at the ONS commented: “Sales of household goods thrived as the demand for home improvement continued and, despite a dip this month, online sales remained high.” “However, clothing stores continued to struggle with sales still well below their February level. Overall, the switch to greater online sales means the High Street remains under pressure,” he added. Online sales fell by 2.5% over August, however, online sales surged over lockdown and still remain 46.8% higher than they were in February. Sales of household goods jumped at high as 9.9% at some retailers compared to levels in February.

The Telegraph Media Group has reported a sharp rise in profits after revealing subscriber numbers reached a record high. The number of new subscribers grew 23.4% this year to 522,000. “2019 represented another successful year for TMG as we continued our transformation to a subscription-first business. Our substantial and consistent subscription growth has continued into 2020, with the important milestone of 500,000 subscribers surpassed in May 2020,” said Nick Hugh, chief executive of Telegraph Media Group. “With average revenue per subscriber also continuing to increase in line with our plan, we remain on track to deliver a sustainable and profitable business model. This underpins our continued investment in quality journalism – something that has become ever more important in these uncertain times,” he added. “With average revenue per subscriber also continuing to increase in line with our plan, we remain on track to deliver a sustainable and profitable business model.” In April, the group warned of cashflow difficulties and dozens of employees were put on furlough. However, the group has since repaid all the government support and added that it did not need to access the loan. Operating profit before exceptional items hit £14.3m last year, which is up from £8.3m in 2018. The company is on track to reach 10m registered readers and 1m subscribers by the year 2023.  

John Lewis has posted a £635m pre-tax loss for the first half of the year. The department store announced that it would not be paying its staff bonus for the first time since 1953. “I know this will come as a blow to partners who have worked so hard this year,” said Dame Sharon White, the group’s chief executive. “The decision in no way detracts from the commitment and dedication that you have shown. “The partnership found itself in a similar position in 1948 when the bonus was halted following the Second World War. “We came through then to be even stronger than before and we will do so again.” The department store has also applied for planning permission to turn three floors of its flagship Oxford Street store into office space, which it will rent out. “Oxford Street is our largest and oldest shop and has a surplus of non-selling space compared to our newer shops. We have therefore made a planning application for the upper floors of the shop, to give us greater flexibility on how we use this space more efficiently in future, with the potential to have office space at the top of the building,” said a spokesperson. “While no decisions have been made, any plans would look to further improve our customers’ experience.” Sales at the department store fell 10% over the first six months of the year, whilst revenue grew 2% over the period. John Lewis said they lost an estimated £200m in sales amid the pandemic, whilst spending £50m on protective equipment.  

Next sales fell 34% over the first half of the year, however, the fashion retailer has said business was “more resilient than we expected”. For the first six months of the year, pre-tax profit was £9m and the group has raised profit forecast for the full year from £195m to £300m. “The company’s sales performance through the pandemic has been more resilient than we expected. The scale of our online business, the breadth of our product offer, and the fact that much of our store portfolio is located out of town, have served to mitigate the worst effects of the pandemic on trade,” said Simon Wolfson, Next’s chief executive. Next has also confirmed a partnership with lingerie brand Victoria’s Secret. Richard Lim, chief executive of Retail Economics, said: “The impact of the pandemic decimated demand for new outfits but these figures show resilience during these horrendous conditions.” “This is about weathering the storm more effectively than the competition and Next is well positioned following years of investment in their digital proposition while many others remain in survival mode,” he added. The group also warned that the tighter social distancing rules could affect sales over the Christmas period. if the rule of six is still in play, it “is likely to depress demand for gifts and clothing associated with traditional Christmas family get togethers,” said the group.  

As shoppers move online, John Lewis has revealed plans to reduce the size of its flagship Oxford Street store. The department store has applied for planning permission to turn three floors into office space, which it will rent out. “Oxford Street is our largest and oldest shop and has a surplus of non-selling space compared to our newer shops. We have therefore made a planning application for the upper floors of the shop, to give us greater flexibility on how we use this space more efficiently in future, with the potential to have office space at the top of the building,” said a spokesperson. “While no decisions have been made, any plans would look to further improve our customers’ experience.” The group has so far closed 50 stores this year and expected to post high losses when it reveals half-year results on Thursday. Before the pandemic, the department store showed signs of struggling as the group posted a 65% fall in sales in January this year. in March, John Lewis announced plans to cut its annual staff bonus to the lowest level in almost 70 years.