Warm weather offers boost to retail sector

Summer sunshine and sporting events have helped boost sales for the retail sector in June, the latest Office for National Statistics (ONS) figures have revealed.

Sales volumes rose 0.9% month-on-month, and offer some reprieve for retailers which had seen a 2.8% fall in May. Rises in sales for supermarkets and drinks purchases were fueled by both the warmer weather and social gatherings to watch some of the major sporting events that took place last month.

With this year seeing the warmest June on record in the UK, unsurprisingly sales of electric fans also surged, despite weakened demand more widely at household goods retailers. Non-food retail more broadly saw slower gains, with sales volumes up just 0.2%.

Retailers also reported lower footfall, although online sales were up 4.5% on the same time last year, and accounted for 27.8% of total retail sales.

Responding to the latest ONS Retail Sales Index figures, Dr Kris Hamer, Director of Insight at the British Retail Consortium, said:

“June was a good month for much of UK retail, as the warm, sunny weather got people spending. Electric fans sold well last month as people scrambled to cool down their homes. Sales of food and drink also performed well, and while this was in part driven by rising inflation, the warmer weather and packed sports schedule also encouraged more social gatherings. 

“Unfortunately, with BRC data showing consumer confidence tumbled in July, sales performance over the rest of the summer is at risk. Retailers are currently grappling with £7bn of extra costs as a result of last year’s Budget. Even this month’s sales uplift can only go so far. If the Chancellor heaps further taxes on the industry at the upcoming Budget, then retailers will face little choice but to raise prices or reduce investment in shops and jobs.”