UK retail recovery continues apace in August

British retail sales extended gains last month, as parts of the sector enjoyed a much faster rebound than most of the economy, official figures showed on Friday, Trend reports with reference to Reuters.

Retail sales volumes rose by 0.8% in August, the Office for National Statistics said - slightly above the average 0.7% forecast in a Reuters poll - and compared with a year earlier they were up 2.8%, versus forecasts of 3.0% annual growth.

British retail sales had already overtaken pre-COVID levels in July and now stand 4.0% higher than before the crisis.

However, the rebound masks a sharp split between online and high-street retailers, with online and mail order retailing up 34.4% on the year in August, while many traditional retailers outside the grocery sector have struggled due to reduced footfall.

The crisis in traditional retailing is having a knock-on effect for commercial landlords, with some stores closing and tenants such as clothing chain New Look seeking to renegotiate rents so that they are linked to turnover.