Tuesday 27 July 2021 10:29 am | Updated: Tuesday 27 July 2021 12:06 pm

UK retail industry kicks reliance on alcohol and tobacco sales

The ONS estimates that the volume of alcohol and tobacco sales has plummeted 76 per cent over the last three decades

Britain’s retail industry has kicked the habit of relying on alcohol and tobacco sales to generate income, according to a new study published today.

The Office for National Statistics estimates that the volume of alcohol and tobacco sales has plummeted 76 per cent over the last three decades.

The reduction in tobacco consumption since 1989, the first year the ONS’ study examines, has been partly driven by public health campaigns educating consumers on the dangers of smoking.

A ban on indoor smoking is also likely to have contributed to preventing people from either starting smoking or prompting existing smokers to quit. The ONS said 15.5 per cent of adults smoked in 2016 compared to 26.8 per cent in 2000.

“The overall amount of alcohol consumed in the UK has fallen, as well as the proportion of people reporting to be drinking, and the amount that drinkers report consuming” the ONS said.

The findings were part of a wide ranging study from the national statistic office in which it explored economic trends in the retail industry between 1989 – 2021.

It found that the volume of retail sales has more than doubled over the period, with food stores routinely representing the highest contributor to total sales each year over the last 25 years.

Retail sales in Japan and Italy actually fell over the same period, reflecting the relatively poor economic performances these countries have posted over the last three decades.

Online retail sales accelerate

Even before the pandemic, online retail sales were accelerating at a rapid pace as consumers switched to using the internet for greater convenience.

Every retail sector except automotive underwent a tenfold increase in online retail sales between 2006 – 2020, according to the ONS’ figures.

The ONS said the rapid rise was mainly driven by the rollout of broadband across the UK giving more households access to the internet.

Firms have responded to higher online retail sales volumes, with the proportion of businesses making e-commerce sales rising to 28.6 per cent in 2019, up from 17.1 per cent from a decade before. Latest data shows online retail sales represented 26.7 per cent of all sales in June.