In July, the UK’s total retail sales saw a 0.5% increase compared to the previous year, while non-food sales experienced a decline.
- The British Retail Consortium released retail sales figures for June 30 to July 27, highlighting varied consumer spending patterns.
- Helen Dickinson remarked on an uptick in summer clothing and health products sales due to better weather and increased outings.
- Spending on entertainment and vacations eclipsed purchases for indoor goods like furniture and appliances.
- With political stability post-election, retailers anticipate reforms in business rates as outlined in the Labour government’s manifesto.
The British Retail Consortium (BRC) released figures for the four weeks from June 30 to July 27, indicating that the UK saw a year-on-year retail sales increase of 0.5%. This growth was largely attributed to an improvement in sales of summer clothing and health products, spurred by favorable weather conditions. According to Helen Dickinson, BRC’s chief executive, the late arrival of summer prompted consumers to spend on events and holidays, boosting these categories.
Despite the uptick in overall sales, non-food items saw a decline of 1.7%. Dickinson noted that consumer spending on vacations and outdoor activities drew funds away from indoor merchandise, including household appliances and furniture.
Post-election economic stability has led to optimism among retailers regarding the new Labour government’s economic policies. Retailers are particularly interested in the upcoming Autumn Budget, hoping for a cessation in the rise of business rates and looking forward to comprehensive reforms of the business rates system, commitments made in Labour’s manifesto.
Linda Ellett from KPMG highlighted that household spending is increasingly impacted by rising living costs. She explained that while some sectors are witnessing wage growth, others are experiencing job cuts, forcing consumers to be cautious with expenditures, potentially reserving savings for future uncertainties.
Retail sales dynamics in July reflect consumer adaptability to economic and political changes, highlighting cautious optimism among retailers.
