Sales Almost Recovered From Crisis in Jun; But Down in Q2

UK JUN RETAIL SALES +13.9% M/M; -1.6% Y/Y, ABOVE BBG +8.3% M/M F/C
UK JUN RETAIL SALES EX-FUEL +13.5% M/M; +1.7% Y/Y
UK MAY TOTAL SALES REVISED UP +12.3% M/M
UK JUN RETAIL SALES DEFLATOR -1.5% Y/Y; EX-FUEL +0.1% Y/Y

Retail sales registered another strong reading, rising 13.9% and
beating expectations. June's uptick was led by a further recovery of
non-food and fuel stores, up 45.5% and 21.5% m/m,
respectively. May's and Jun's increases took sales almost
back to Feb's level with Jul sales only 0.6% lower than in
Feb. However, the structure of sales changed compared to
pre-crisis levels. Food sales continue to record levels above
pre-crisis levels and online sales have risen to a record
high. Clothing and footwear remain weak and sales in non-food
stores are around one-third lower than before the
pandemic. Sales saw the weakest q/q growth on record, leading to a
neg 0.51pp contribution to Q2 GDP.