UK retail sales dip slightly amid cool June weather

8th Jul 2024 07:20

(Sharecast News) - Retail sales in the UK dipped slightly in June, according to fresh data released on Tuesday, as a result of a markedly cooler summer so far.

According to the latest BRC-KPMG Retail Sales Monitor overall sales decreased 0.2% year-on-year, comparing unfavourably with the 4.9% growth seen in June last year, but still above the three-month average decline of 1.1%.

"Retail sales performed poorly in June as the cooler weather during the first half of the month dulled consumer spending," said British Retail Consortium chief executive officer Helen Dickinson.

"Sales of weather-sensitive categories such as clothing and footwear, as well as DIY and gardening were hit particularly hard, especially compared to the surge in spending during last June's heatwave."

Dickinson added that electronics sales had a better month as football fans upgraded their home entertainment systems and people replaced pandemic purchases.

"Retailers remain hopeful that as the summer social season gets into full swing and the weather improves, sales will follow suit."

Food sales showed modest resilience, growing by 1.1% year on year over the three months to June.

However, that was a significant drop from the 9.8% growth recorded in June 2023 and falls short of the 12-month average growth rate of 5.5%.

Despite the slowdown, food sales experienced year-on-year growth for June.

In contrast, non-food sales faced a steeper decline, falling by 2.9% year on year over the three-month period to June, compared to a marginal growth of 0.3% in June 2023.

That decline was more pronounced than the 12-month average drop of 1.9%, while for June alone, non-food sales also saw a year-on-year decline.

In-store non-food sales decreased by 3.7% year on year over the three months to June, a notable drop from the 2.0% growth in June 2023.

That decline exceeded the 12-month average decrease of 1.5%.

Online non-food sales presented a mixed picture, with a year-on-year decrease of 0.7% in June.

That was a slight improvement over the average decline of 1.0% in June 2023 and better than the three-month and 12-month average declines of 1.5% and 2.6%, respectively.

Notably, the online penetration rate for non-food items increased to 36.2% in June, up from 35.2% in June 2023, aligning with the 12-month average of 36.2%.

"The retail industry is vital to the nation's economy as an important source of employment and investment," Helen Dickinson added.

"The industry shapes local communities and provides three million jobs across the country.

"Through its scale and reach, retail can make a huge contribution to Labour's policy goals, and the industry stands ready to work with the new government to find ways to make this happen."

Reporting by Josh White for Sharecast.com.