UK Retail Sales Surge

​The shops have reopened and people want to go out for some well deserved retail  therapy! Its been a long lock-down this time around in the UK and the rush back to the shops has boosted retail sales much more than expected.

In conjunction with the re-opening, we have rising consumer confidence which suggests that spending will remain strong over the next few months. However, online shopping will still dominate so the high street could still feel the pressure and a challenging recovery.
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April's surge in retail sales was significantly greater than expectations with a 9% month on month jump. This means that sales are 10% above pre pandemic levels! This is to be expected after another prolonged lockdown with lots of pent up demand. People simply weren't buying new clothes or shoes as many places were closed and events cancelled. This shows up in the data as clothing and footwear had the largest increases.

Will It Last?

The vaccination programme is steaming ahead at full speed and we can see the light at the end of the tunnel. People are feeling more confident about their safety and getting back to some degree of normality as well as more confidence in the economic recovery. The economic indicators are looking increasingly positive but there are still a few crosswinds in some of the data. 

On the High Street

Trading conditions are still a bit vulnerable on the high street as the trend to online shopping continues. The novelty of going to the shops again following the lock down may not last as people revert to online shopping. Foot fall for the High Street restailers is not as good as it could be but this may improve when the offices  reopen and people make there way back to the workplace. In addition, High Street retailers are under pressure from rent arrears and costs linked to the pandemic so cashflow is taking a hit.

Conclusion

Futher gains are on the radar for reatil sales but we might see the spending going to the online retailers rather than the High Street.