July’s total retail sales increased 6.4% yoy (June +10.4%) with LFL sales up 4.7% (June +6.7%) versus July 2020. LFL has been measured excluding temporarily closed stores, but including online sales. The lifting of restrictions did not result in an in-store boost as anticipated, with the wet weather and reopening of hospitality and leisure not helping. Non-food and food sales both grew yoy in July. Over the 3 months to July, total food sales were up 2.9% yoy (+3.2% in June) with LFL up 0.8%. Food and drink returned to growth in July after several months where sales did not hit the peak of post-Easter 2020. Non-food sales were up 24.6% yoy over the last 3 months (June +49.6%), with LFLs up 17.6%. Non-food in-store sales increased 64.9% with LFL +48.1% in July yoy, but fell back versus 2019. July’s online non-food sales increased 0.6% yoy (June down 5.9%) versus a three-month average decline of 4.6%. The online penetration rate decreased to 48.2% in July, from 54% the year before. Some signs that footfall patterns are starting to strengthen on the High Street as the tapering of the furlough scheme began and more people started to return to work at the office. Formal wear and beauty saw a noticeable bounce back helped by the resumption of weddings, social events and return to work. Fashion outlets (both men and women) saw a bounce back to pre-pandemic levels with warm weather at the beginning of the month helping summer wear. Beauty products outperformed health-related goods yoy for the first time since the start of the pandemic. Many other non-food categories had a less strong performance, especially those related to the home after the house moving frenzy of recent months started to abate. Despite supply chain issues continuing for some retailers, during July, Furniture sales saw solid double-digit growth on a 2-year basis. Home Accessories saw a slowdown in growth on a 2-year basis for the second consecutive month, while the yoy performance was in line with June, recording a decline from the same month last year. Home textile sales were ahead on a 2-year period. Household appliances returned to growth yoy in July. Consumers continue to want to buy white goods, and air conditioning benefited from the hot weather at the beginning of the month. Computing remained in decline for the third consecutive month in July on a year-on-year basis, though the category continues to trade above pre-pandemic levels.