Election uncertainty and poor weather dampened retail sales in June.
- Retail sales saw a decline of 1.2% in June, impacted by adverse conditions.
- Textile, clothing, and footwear sectors experienced a 1.6% fall in sales.
- Online sales of textiles, clothing, and footwear decreased significantly by 5.4% over the quarter.
- Despite challenges, falling inflation provides a glimmer of hope for consumers.
In June, retail sales witnessed a downturn, dropping by 1.2% as reported by the Office for National Statistics (ONS). The decline was attributed to election uncertainty and poor weather, which significantly affected consumer footfall and spending behavior.
The textile, clothing, and footwear sectors particularly suffered, with sales falling by 1.6%. Consumers were less inclined to make purchases, both in physical stores and online, during this period.
Online sales figures reflected a pronounced decline, with non-food stores, including textiles, recording a 5.4% reduction between April and June compared to the previous quarter. This highlights the growing strain on online retail in a challenging economic climate.
In contrast to June’s dip, the ONS had previously recorded a 2.9% rise in retail sales in May, suggesting that the economic outlook is highly volatile and subject to sudden shifts due to external factors.
While the retail sector grapples with these setbacks, some economic indicators offer a positive outlook. Inflation rates have fallen, and recent Consumer Price Inflation (CPI) data shows headline inflation steady at 2%, with food inflation experiencing a slight decrease. Kris Hamer from the British Retail Consortium notes that reduced energy costs and a stronger pound are contributing to lower prices in various sectors, providing some relief to consumers. ‘A drop in prices could also be seen across clothing and footwear, with prices falling 1.2% on the previous month, and even more for children’s clothes,’ Hamer remarked.
Despite current challenges, the prospect of falling inflation offers some hope for the retail sector going forward.
