British retail sales fell by 2.5% compared to the previous month, according to data from the UK Office for National Statistics (ONS).

The sharp drop confounded analyst expectations of a modest 0.4% increase.

The decrease was partly driven by wet weather at the beginning of the month, which discouraged people from leaving their homes.

A drop in food sales was attributed to the lifting of remaining Covid-19 restrictions in the middle of the month, which spurred people to splash the cash on hospitality and entertainment instead.

Food sales had surged in June, as the promising start for England at the Euro 2020 football tournament coincided with warm weather.

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A separate Bank of England survey hinted that Brexit-related supply chain issues have resulted in a shortage of many consumer goods, in particular electronics.

In a press statement, home delivery service ParcelHero placed the blame squarely on the lifting of mask mandates and social distancing rules on so-called 'Freedom Day'.

They noted that over two-thirds of consumers wanted such restrictions to stay, and in their absence they might have avoided crowded retail outlets.

Indeed, online sales reversed their months-long decline and rose by 0.3% in July.

The Delta variant surge over the period also forced many would-be shoppers and store workers into self-isolation.

The UK data should inform Irish policymakers as they formulate the road map out of all remaining restrictions.

Retailers have been particularly hard hit by the pandemic and will be looking for clarity on the path forward.

Pic: Olivier Bruchez