Retail sales in Great Britain fall amid supply chain disruption

Retail sales in Great Britain fell unexpectedly in August amid supply chain disruption and a consumer spending switch from supermarkets to pubs and restaurants as pandemic restrictions eased.

The Office for National Statistics said retail sales dropped by 0.9% in August after a steeper decline of 2.8% in July. While spending remains above pre-pandemic levels, City economists had forecast a rise of 0.5%.

According to the latest snapshot, sales of food dipped by 1.2% on the month after the easing of hospitality restrictions had an impact, with people raising their spending on social activities such as eating and drinking in restaurants, pubs and bars.

However, sales fell across a broad range of other categories, including a sharp drop at department stores as disruption to supply chains weighed on retailers.

According to the latest snapshot, sales of food dipped by 1.2% on the month after the easing of hospitality restrictions had an impact, with people raising their spending on social activities such as eating and drinking in restaurants, pubs and bars.

However, sales fell across a broad range of other categories, including a sharp drop at department stores as disruption to supply chains weighed on retailers.

Britain’s biggest retailers have warned that stock levels are at their lowest since the 1980s, with the economy under growing pressure from shortages of workers and goods because of the fallout from Covid-19 and Brexit.