2 UK shares to buy in August

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I have been looking for UK shares to buy for my portfolio that may benefit from the reopening of the economy. I think August could be the perfect time to buy these companies. It will be the first month without restrictions for the economy since the beginning of the pandemic. 

So without further ado, here are two UK shares I would buy in August. 

Reopening stocks

The first company is the pub operator Young & Co’s (LSE: YNGA). I would buy this firm over its competitors because it offers a premium offering with a London focus.

Initial figures seem to suggest that consumers are spending their lockdown savings on more premium products. Young’s could benefit from this trend. 

According to its latest trading update, consumers are not waiting around to get back into the pub. In an update issued ahead of the company’s annual general meeting, management noted that sales for the 13 weeks to 12 July were 95% of pre-Covid-19 levels.

Significant pent-up demand,” helped drive sales growth across the group, according to the update. 

With sales already running at 95% of pre-Covid-19 levels, I think there is a good chance the recovery will continue into August.

However, it is unlikely to be plain sailing for the pub operator as we advance. The hospitality industry is currently experiencing disruption as many staff are being asked to self-isolate. Operators like Young’s are also struggling to find enough staff in the first place. 

Still, despite these challenges, I would buy the stock for my portfolio of UK shares in August. 

Hospitality UK shares

The other company I would buy for my portfolio in August is Loungers (LSE: LGRS). 

This group, which operates 173 cafes and bars across England, is also reporting strong growth from pent-up demand. Like-for-like sales for the four weeks to the 13 June were up 26.6% compared to the same period in 2019. 

The company has also used downtime over the past 16 months to increase its portfolio. It has opened a total of eight new sites since the beginning of the pandemic, which should help support the group’s overall recovery in the months and years ahead. 

All of the above suggests to me that barring another lockdown, the firm could be on track to report a robust trading performance in the second half. 

Once again, while Loungers looks to be firing on all cylinders, the group may face some challenges as we advance. Like Young’s, the company may be experiencing staffing pressures, and it may have to deal with higher costs. The cafe and bar industry is also highly competitive, which suggests Loungers needs to keep investing in its product, or risk being left behind. 

Even after taking this risk into account, I would buy the company for my portfolio of UK shares in August, considering its recovery potential. 

The post 2 UK shares to buy in August appeared first on The Motley Fool UK.

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Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.