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As Euro 2020 Enhances Food And Drink Purchases Retail Sales Are Rebounding

In June, retailers witnessed a boost in sales as football enthusiasts flocked to the Euros to buy more food and drink.
Retail sales volumes climbed by 0.5% in June, according to the Office for National Statistics (ONS).
It followed a surprising drop in retail sales the previous month, and the latest results also outperformed analysts’ forecasts for a flat performance.
In comparison to pre-pandemic levels in February 2020, the ONS said June’s statistics represented a 9.5% increase in retail sales volumes.
It went on to say that last month’s increase was mostly due to robust grocery store sales, which increased by 4.2%.
Anecdotal evidence linked robust food and drink sales with the commencement of the Euro 2020 tournament, according to the ONS.
That was a rebound from a 5.5% drop in food store sales in May, when the reopening of hotels temporarily slowed business.
“June retail sales have perked up again following the decline witnessed last month, with the primary driver coming from food and drink sales, driven by football fans throughout Britain enjoying the Euros,” said ONS director of economic statistics Darren Morgan.
“Fuel sales rose again this month, though not quite back to pre-pandemic levels, as consumers increased the amount they travel and spent more at the pump,” the ONS said. Vehicle fuel sales increased by 2.3% over the month but are still 2.1% behind pre-pandemic levels, according to the ONS.
Non-food stores continued to have weaker sales in June, with a 1.7% drop compared to May.
“The first full month of reopening for indoor hospitality was always going to be make or break for the retail sector, and weve seen both increased footfall for the high street, with online sales at their lowest level (26.7%) since the beginning of the pandemic, and, perhaps surprisingly, a rise in demand for grocery,” said Lisa Hooker, consumer markets head at PwC.
“June’s numbers appear to have benefited from a combination of food and drink sales to fans enjoying the home team’s Euro win, as well as record high consumer sentiment levels.”
“Yet, headline gain belies falls in other non-food categories, with domestic goods sales experiencing their first non-lockdown induced decline since the pandemic began, as individuals began to spend more time outside the home.”

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