The summer sports season, along with strategic discounts, bolstered retail sales in July, reversing the previous month’s decline.
- Retail sales saw a modest increase of 0.5% in July, driven by sports events and discounts.
- The Office for National Statistics reported a 1.1% increase in sales volumes over the three months leading to July.
- Non-food stores experienced a 1.4% rise in sales volumes in July after a significant drop in June.
- Online spending showed robust growth, spiking by 2.5% in July.
In July, the retail sector experienced a modest recovery, with sales rising by 0.5%, largely attributed to summer sports and strategic discounts offered by department and sporting goods stores. This uptick comes after a 0.9% decline in June, as reported by the Office for National Statistics (ONS).
The ONS data revealed that the sales volumes from May to July increased by 1.1% compared to the preceding three months, illustrating a gradual recovery in consumer spending amidst challenging economic conditions.
A noteworthy 1.4% rise was observed in non-food store sales volumes in July, reversing the 1.9% decrease in June. Department stores and sports equipment retailers were pivotal in this growth, as they capitalized on the fervor surrounding summer sporting events such as the UEFA Euro 2024.
Online retail expenditure also saw a significant spike, with spending increasing by 2.5% in July. This surge indicates a growing consumer shift toward online shopping, partly driven by convenience and competitive pricing.
Kris Hamer, director of insight at the British Retail Consortium, highlighted the impact of improved weather and consumer anticipation of summer holidays on retail growth. He emphasized that while high living costs continue to challenge consumers, easing interest rates may enhance consumer confidence and spending in the upcoming months.
Hamer noted that retailers are closely working with the government to maximize their contribution to economic growth. However, he expressed concerns over potential hikes in business rates due to rising inflation, which could further strain retail businesses.
As the industry navigates these economic headwinds, many retailers are eyeing the forthcoming Autumn Budget, hoping for relief from the prolonged increase in business rates that have risen considerably over the past 14 years.
The summer of sports, coupled with strategic discounting, significantly aided retail sales growth in July, offering a reprieve from prior declines.
