Retail Sales Mixed Bag: Essentials Up, Discretionary Down

The latest first estimate retail sales statistics, released today by Office for National Statistics, show:

• The seasonally adjusted value of retail sales declined by 0.1% in August 2009 compared with July 2009.
• The seasonally adjusted value of retail sales in August 2009 rose by 1.6 per cent compared with August 2008, of which:
  • Predominantly food stores rose 5.5%;
  • Predominantly non-food stores declined 2.8%, comprising:
    • Other stores down 4.2%;
    • Household goods stores down 3.7%;
    • Textile, clothing and footwear stores down 3.2%, and;
    • Non-specialised stores up 1.6%.
• The seasonally adjusted volume of retail sales in August 2009 was unchanged on July 2009.
• The seasonally adjusted volume of retail sales in August 2009 rose by 2.1 per cent compared with August 2008, of which:
  • Predominantly food stores increased by 3.3%;
  • Predominantly non-food stores increased by 0.2 per cent, comprising:
    • Non-specialised stores increased by 4.2%;
    • Textiles, clothing and footwear stores increased by 4.2%;
    • Household goods stores decreased by 3.9%, driven by a decrease in electrical stores, and;
    • Non-store retailing and repair increased by 12.4%.
• Experimental Internet retail sales series. The non-seasonally adjusted data average weekly value of Internet retail sales in August 2009 was £173.6 million which was approximately 3.3% of total retail sales.

As evidenced by the different performance of predominantly food stores as opposed to predominantly non-food stores, retail spending continues to be concentrated on essentials first. This trend will surely continue until sufficient numbers of households are confident enough in their finances to increase discretionary spending.

ONS: News Release [PDF] – Statistical Bulletin [PDF].

Note: The August 2009 period covered 4 weeks from 2 to 29 August. Retail sales volume is the total takings adjusted for inflation and the value of retail sales is the total actual takings. All volume statistics referred to above are seasonally adjusted and chain linked.

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