UK retail sales saw a minor increase in July, with a 0.5% rise year-on-year, despite a drop in non-food sales.
- The British Retail Consortium released data for the four weeks ending 27 July, showcasing varied sector performance.
- Summer clothing and health products saw growth due to improved weather conditions, according to Helen Dickinson from the BRC.
- Household and indoor goods faced decreased attention as consumers focused on travel and leisure activities.
- Retailers are optimistic about the Autumn Budget for potential business rate reforms under the new Labour government.
The British Retail Consortium reported a modest 0.5% increase in UK retail sales year-on-year for July, a period spanning four weeks until 27 July.
Despite this overall growth, non-food sales saw a decline of 1.7%. Helen Dickinson, the chief executive of the BRC, attributed the improved sales figures in summer clothing and health products to the late arrival of warmer weather, which encouraged shoppers to prepare for outings and holidays.
Conversely, sales of indoor goods, including furniture and household appliances, experienced a downturn. This shift was driven by consumer spending on holidays and leisure, reflecting a change in purchasing priorities.
The end of election-related uncertainty and government initiatives aiming at economic growth are anticipated to support future retail investment strategies. Ms. Dickinson noted that retailers are particularly keen to see commitments to end business rate increases fulfilled, as promised in the Labour party’s manifesto.
Linda Ellett from KPMG highlighted another aspect influencing consumer behaviour: the variability in sectorial wage growth. While some sectors witness wage increases, others are seeing job cuts. Consequently, some consumers remain cautious about their spending, mindful of the necessity to rely on savings if unemployment issues arise.
The retail sector remains cautiously optimistic, anticipating economic and legislative developments that could influence future strategies.
