MNI 5 THINGS: UK Retail Sales Kicks-Off Q3 in Strong Fashion

By Jamie Satchi and Jai Lakhani

     LONDON (MNI) - The following are the key points from the UK retail sales

data published Thursday by the Office for National Statistics.

     - Bucking the trend, analysts underestimated July retail sales activity in

June. Sales volumes rose by 0.7% between June and July, beating the no-growth

outturn anticipated by markets, only the second time since 2010 that a positive

data surprise was delivered.

     - Whilst food sales continued to support overall activity, the bulk of the

July expansion was actually down to non-food and non-store retailing. The latter

grew by 4.9% m/m and was driven by internet, mail order , stalls and markets...

     - ...Feedback from retailers suggested online promotions were prominent in

July. Non-store retailing price growth fell by 0.6pp to 0.9% y/y -- the weakest

since Jan 2017.

     - Online sales values, as a share of total retailing, usurped June's record

high, rising by 0.2pp to 18.2% in July. While shoppers may be shunning the high

street they appear to be active online. Department stores continued to show a

strong online presence, registering a 35.0% y/y rise in online sales values in

July.

     - Household good sale growth fell to 1.8% 3m/3m in July, following a 4-year

high in June. After an initial boost to the sector, brought about by the better

weather and other unique events, activity has cooled. Sales were down 1.5% m/m

in July -- the weakest showing this year.

     - BONUS: Underlying retail price growth weakened in July. Excluding fuel,

retail prices grew by just 1.0% -- the joint-weakest showing since Jan 2017 --

supporting Wednesday's CPI data which showed services inflation fairly flat.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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