July 2022 ONS Retail Sales Data

The July 2022 ONS Retail Sales Data report has revealed the latest trends and retail statistics. This article explores key findings, offering expert opinions on what this means for the retail industry, as well as top tips to grow business amidst changing consumer habits.

Key findings from July 2022 ONS Retail Sales Data 

• Retail sales volumes rose by 0.3% in July 2022 following a fall of 0.2% in June 2022 (revised from a fall of 0.1%); sales volumes were 2.3% above their pre-coronavirus (COVID-19) February 2020 levels, but down over the past year
• Looking more broadly, in the three months to July 2022, sales volumes fell by 1.2% when compared with the previous three months; this continues the downward trend since summer 2021
• Non-store retailing (predominantly online retailers) sales volumes rose by 4.8% in July 2022; feedback from online retailers suggested that a range of promotions in July 2022 boosted sales
• Non-food stores sales volumes fell by 0.7% over the month because of falls in other non-food stores (negative 1.5%), and clothing stores (negative 1.2%)
• Food store sales volumes rose by 0.1% in July 2022; sales volumes were 0.1% below their February 2020 levels
• The proportion of retail sales online rose to 26.3% in July 2022, from 25.3% in June 2022; despite this pick-up, it continues a broad downward trend since its peak in February 2021 (37.5%), but remains above pre-pandemic levels (19.8% in February 2020)

What the experts have to say about the July 2022 ONS Retail Sales Data

Andrew Busby, Retail industry lead at Software AG

“Despite the heat waves, summer festivals, and the Lionesses’ success that may have enticed increased spending over the month, consumers continue to tighten their belts amid the economic uncertainty.  

“We are seeing across the board that basket sizes are reducing as money isn’t stretching as far as it once used to, but the frequency of visits is rising. This proves that the age of ‘just in time’ shopping is taking hold as consumers look to cut costs, reduce waste, and only buy what they need when they need it. 

“Brands must listen to consumer trends and align stock levels based on their preferences. Technology can help retailers forecast demand and ensure inventory is in the right place at the right time. With technologies helping to improve efficiencies and provide true flexibility, retailers will be able to do more with less, and flourish during downturns.”

By Ted Rogers, Chief Revenue Officer at Digital River  

“Despite sales increasing in July, there is clear evidence that the cost-of-living crisis is impacting consumer habits. 

“Our research found that with over one in six adults stating they are struggling financially and more than a third are just ‘getting by’, they are focusing their spending online.

“Although 58% of UK adults have reduced their spending on non-essential items in the last six months, nearly half continue to make at least one online transaction per week because of the ability to compare items online more easily and find the lowest prices. 

“In the most testing of times, retailers must adapt and meet consumer demand – only those that offer competitive prices, and delivery and payment options, will survive.” 

Samantha Mansfield, head of strategy Experience & Commerce, Merkle UK

“The cost-of-living crisis continues to leave its mark. The long-term cutbacks made by shoppers are being felt by retailers as sales fell in the three months to July, showing a longer downward trend. The increasing chances of recession, as well as the energy crisis, will continue to be a massive blow to retailers. 

“It’s hard to predict what will happen next. Companies must try and save costs wherever possible, whilst still nurturing the relationships with their audience and enhancing the customer experience. If there are plans to close stores, increase prices, or even reduce stock, it’s important to let their customers know, as honestly and in advance as possible. Being vulnerable is relatable and can be a saving grace for such an uncertain future as we are witnessing.”

Brian Atkinson, Vice President and General Manager EMEA at Five9

“Despite the heatwave encouraging a boost in retail sales in July by 0.3%, consumer confidence has hit a record low. Trading will undoubtedly become more difficult as consumers prioritise spending on essentials. There will be a strong focus from retailers on improving costs and efficiencies to ensure consumers are getting the best price, while still operating as profitable businesses.

“But quality customer experiences (CX) cannot be overlooked. Brands must remember that good CX is based on trust and authenticity and right now, consumers need this more than ever. There is huge value in embracing the empathy and judgement of humans while enhancing it with the speed, scale, and cost savings of AI. Amid further economic instability, this is how businesses can deliver customer interactions that reduce frustrations while maintaining their authenticity and reliability.”

Read the full July 2022 ONS Retail Sales Data report

To read the full report on the July 2022 ONS Retail Sales Data, click here.