Furniture retail sales decreased during August on last month and were also down against an annual comparison.
According to the latest data from the Office for National Statistics, furniture and lighting retail sales fell 0.9% to £1.06bn from £1.07bn in July. Compared to the previous year, sales were down 15.8% from £1.26bn.
Floorcovering retail sales increased month-on-month, up by 7.9% to £250.4m from £232m. Compared to the same time last year, sales rose by 12.7% from £222.1m.
Retail sales volumes (quantity bought) are estimated to have risen by 1.0% in August 2024, following a rise of 0.7% in July 2024 (revised up from a 0.5%). As for the value (amount spent), this was down 3.2% month-on-month to £38.8bn.
Non-food stores sales volumes, the total of department, clothing, household and other non-food stores, rose by 0.6% in August 2024, with clothing stores having the largest impact. Comments from retailers attributed the growth to end-of-season sales, alongside some mention of better weather. This follows a rise of 1.6% in July 2024.
The amount spent online, known as “online spending values”, remained flat at 0.0% during August 2024, and rose by 4.3% compared with August 2023. Total spend, the sum of in-store and online sales, rose by 0.4% over the month. As a result, the proportion of sales made online decreased from 27.8% in July 2024 to 27.6% in August 2024.
Commenting on the retail sales figures for August, ONS Chief Economist Grant Fitzner said: “Retail sales rose in August as warmer weather and end of season promotions helped to boost sales, most notably for clothing and food shops. Supermarkets, in particular, contributed to the largest annual rise for food sales since the summer of 2021.
“Looking at the broader picture, retail sales have also increased across the three month and annual period, following strong growth from online retailers. However, sales overall remain slightly below their pre-pandemic level.”
Responding to the latest ONS Retail Sales Index figures, Kris Hamer, Director of Insight at the British Retail Consortium, said: “With summer in full swing, sales growth picked up in August. Computing performed well as extensive summer discounting encouraged consumers to upgrade their tech, and students organised themselves for the new academic year. Food, cosmetics, and fashion sales also had a good month as people hosted family and friends for picnics and barbecues and prepared for summer holidays and other social events. Meanwhile, furniture and household goods failed to shine, as people opted to spend their money on experiences instead.”
“Clearly, the high cost of living still bears down on consumers, meaning demand may dip further when energy bills rise once again in October. On top of difficult trading, retail faces a disproportionate tax burden compared to other industries, holding back investment, and contributing to a decline in shops and jobs. Government must take decisive action in the upcoming Budget and introduce a 20% Retail Rates Corrector – a 20% adjustment to bills for all retail properties – to level the playing field. This would drive economic growth and restore high streets up and down the country.”
