Retail sales in June were adversely affected by a combination of election uncertainty, poor weather, and reduced foot traffic.
- According to the Office for National Statistics (ONS), retail sales decreased by 1.2% in June, with textile, clothing, and footwear sales specifically declining by 1.6%.
- Comparative data reveals that non-food store sales volumes saw a 0.5% decline from April to June 2024 compared to the first quarter of the year.
- A notable drop of 5.4% was observed in the online sales of textiles, clothing, and footwear during the same quarter.
- Economic indicators such as average earnings growth and job vacancy numbers also portrayed a slowing trend during this period.
Retail sales in June faced several challenges that collectively contributed to a decrease of 1.2%, as highlighted by the Office for National Statistics. Among the most impacted sectors was textile, clothing, and footwear, which experienced a sharper decline of 1.6%.
The period from April to June 2024 saw a decline of 0.5% in non-food stores sales volumes when compared to the first quarter of the year. This trend underscores a broader contraction in consumer spending during these months.
Online sales are often seen as a stronghold for retail; however, the data revealed a concerning 5.4% drop in online sales for textiles, clothing, and footwear over the quarter. This decline reflects broader challenges within the retail sector, accentuated by the prevailing market conditions.
Economic conditions during this time illustrated a mixed picture. While average regular earnings growth remained relatively robust at 5.7% in the three months leading up to May, it showed signs of slowing. Simultaneously, the unemployment rate was stable at 4.4%. However, the total number of job vacancies dropped to approximately 889,000, marking a reduction of 30,000 for the quarter.
Liz McKeown from the ONS commented on wage growth, indicating that although it was strong, it was beginning to slow. Importantly, in real terms, it reached a peak not seen in over two and a half years due to decreasing inflation.
The Consumer Price Inflation (CPI) figures released concurrently revealed that headline inflation remained stable at 2%, with food inflation seeing a reduction. The British Retail Consortium (BRC) noted that such inflation rates could advantage households due to decreasing prices in food, clothing, and footwear on a month-on-month basis.
The retail sector in June faced significant challenges, primarily due to election-related uncertainties and adverse weather conditions, resulting in decreased sales.
