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Thursday, December 9, 2021

Retail industry on the rise

Retail Sales 2015: By Afolabi Thomas

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Retail Sales JuneThe retail industry has continued growing for its 27th consecutive month in June 2015, increasing by 4.0% compared with 2014. Majority of this growth is contributed by the online retail industry, which increased by 1.4% compared with May 2015 and accounted for 12.4% of all retail sales. The greatest contributor to falling retail sales was the petrol industry falling by 10.0%, the 22nd consecutive month of year-on-year fallen store prices. This is most likely due to the overall falling price of oil, which some feel won’t reach $90 or $100 a barrel in years.

Contributions to year-on-year value growth from the 4 main retail sectors (June 2015 compared with June 2014)

Source: Monthly Business Survey - Retail Sales Inquiry - Office for National Statistics
Source: Monthly Business Survey – Retail Sales Inquiry – Office for National Statistics

What do we spend our money on?

We compare the four retail sectors (food stores, non-food stores, non-store [mail order], petrol), by looking at what each sector receives for every pound spent in the retail industry. In June 2015:

  • 41 pence was spent in food stores,
  • 42 pence in non-food stores,
  • 7 pence in non-store retailing,
  • 10 pence in stores selling automotive fuel.
  • Online sales continue in full stride: On average we spend £815.4 million a week online, an increase of 11.4% compared with June 2014.

    Why are we spending less on petrol?

    Well considering the falling oil prices, diesel prices have fallen sharply as well. This has had consumers beginning to think, “why not switch to a diesel car?”. It’s a more affordable option considering that a diesel engine can be 40% more efficient than a petrol engine, and of course lets not forget about the lower CO2 emissions. Besides spending on diesel instead, there can be many reasons why consumers are buying less petroleum. It could also be that the general public are finding alternative ways of transport (for example: bus, train, taxi).

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