Warmer weather brought out shoppers in June

The value of UK retail sales increased by 4.9% in June (28 May-1 July), against a decline of 1% in June 2022, according to the BRC – KPMG Retail Sales Monitor. This is above the three-month average growth of 4.6% and the 12-month average growth of 4%.

UK like-for-like retail sales increased by 4.2% in June, against a decline of 1.3% in June 2022. This was below the three-month average growth of 4.3% and above the 12-month average growth of 3.6%.

Non-food sales increased 0.3% on a total basis and decreased 0.5% on a like-for-like basis over the three-months to June. This is below the 12-month total average growth of 0.8%. For the month of June, non-food was in growth year-on-year.

Over the three months to June, in-store non-food sales increased 2.0% on a total basis and 0.6% on a like-for-like basis since June 2022. This is below the total 12-month average growth of 3.7%.

Online non-food sales decreased by 1.0% in June, against a decline of 9.1% in June 2022. This is shallower than the three-month average decline of 2.4% and the 12-month decline of 3.2%.
‘Retail sales growth ticked up slightly in June as hot weather prompted purchases of summer essentials. Sun-seekers headed to their favourite retailers to buy swimwear and beach towels, and outdoor games, garden furniture and barbecue food were boosted as families came together to celebrate Father’s Day. People were much more cautious about big-ticket purchases like furniture and technology equipment,’ says Helen Dickinson British Retail Consortium chief executive.

‘The sun was shining on retailers in June, with the warm weather bringing consumers back out to the high street and like for like sales up nearly 5% on last year. Online sales continued to fall, but at a much lower rate, with household appliances and gardening equipment proving popular,’ says Paul Martin, KPMG UK head of retail

‘Apart from a blip in May, retail sales growth has remained steady at around 5% every month in the first half of this year. However, the growth comes against a background of much higher inflation levels – resulting in reduced margins and profitability for operators across the sector. As we move into the last half the year, retailers will be hoping that anticipated falls in inflation start to deliver stronger sales growth in order to improve the overall health of the sector. The wild card continues to be food inflation which remains stubborn, and is having a negative impact on consumers’ ability to spend on non-essential items. Consumers have so far remained resilient, but the triple threats of further interest rate hikes, resolute double-digit food inflation and an economy recovering at slower rate than predicted, could hamper a return to much needed profitable growth across the retail sector.’

Footfall

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