Retail sales showed a significant rebound in June, growing by 3.2% overall compared to the same period last year.
- This marks the strongest growth since August 2023, primarily driven by an impressive 9.8% increase in online sales.
- Fashion sector struggled with a 6.7% decline in in-store sales, contrasting with a modest 0.9% overall growth.
- Lifestyle and homeware sectors outperformed fashion with increases of 7.5% and 3%, respectively.
- Experts emphasize the need for government intervention to revitalize high street shopping.
Retail sales experienced a notable upswing in June, reporting a 3.2% growth compared to the same month in the previous year. This surge represents the most significant increase in sales since August 2023 and marks the second consecutive month of positive results, breaking a previous streak of five months with negative outcomes. The substantial growth was largely attributed to an upturn in online sales.
Online retail sales saw an impressive climb of 9.8% in June. This robust performance helped to counterbalance the tepid 1.8% increase in physical store sales, as the latter struggled to draw customers despite favorable weather conditions later in the month. BDO’s insights reveal that the fashion industry lagged behind other sectors, such as lifestyle and homeware, as it faced ongoing challenges.
Fashion retail experienced a 6.7% decrease in in-store sales, highlighting a worrying trend for the industry, which has now faced ten consecutive months of negative sales figures on the high street. This decline was slightly mitigated by a 9.9% rise in online fashion sales, culminating in a marginal 0.9% total growth for the fashion sector during this period.
In stark contrast, the lifestyle and homeware sectors exhibited stronger performances. Lifestyle sales grew by 7.5%, while homeware sales increased by 3%. These sectors capitalized on the prevailing consumer trends and preferences, further underscoring the fashion sector’s relative underperformance.
The current retail climate has prompted industry leaders to call for governmental action. Sophie Michael from BDO highlighted the persistent struggle of high street retailers and pointed out the necessity for a five-point plan proposed by the government aimed at revitalizing town and city center shopping areas.
June’s retail sales figures underscore the resilience of online markets and the ongoing struggles faced by the fashion sector.
