UK Retail Sales Rise in July Surpassing Pre-Covid Peak

British retail sales rose above pre-coronavirus levels in July, the first full month that stores selling non-essential goods opened their doors since the country went into lockdown measures in March.

The strong unexpected retail sales data reveals strength in consumer demand even as the rest of the economy struggles to recover from recent losses.

The Office for National Statistics said retail sales volumes rose 3.6% from their June level, exceeding all expectations in Reuters poll of economists, and 1.4% from their July 2019 level.

This is a strong rebound from double-figure declines in April and May.

Compared to February, before Britain was widely affected by the pandemic, sales were up 3%.

The British retail sector has recovered at a much faster rate than most parts of the economy that have been affected by lockdown measures aimed at fighting the Coronavirus. However, there were different experiences with different types of retail trade.

Grocery stores and other types of food stores benefited, Internet sales were also booming, and home appliance stores recorded strong demand.

But other areas are suffering, as sales of clothing and shoes are still 25% lower than a year ago.

Economists fear that the general recovery of the retail sector will be temporary.