Retail sales in the UK have shown a slight increase, despite varied sector performances.
- The British Retail Consortium (BRC) reports a 0.5% year-on-year growth in total retail sales for July.
- A late arrival of summer boosted sales of clothing and health products, according to BRC’s Helen Dickinson.
- Conversely, indoor goods such as furniture saw a decrease due to consumer spending on holidays and entertainment.
- The economic landscape remains mixed, with ongoing concerns over business rates and consumer confidence.
Retail sales in the UK have exhibited a modest rise with a 0.5% increase year on year for the month of July, as reported by the British Retail Consortium. This period of growth, covering the four weeks from 30 June to 27 July, is highlighted by a complex economic backdrop.
Helen Dickinson, the chief executive of the BRC, attributed this to the late arrival of the British sunshine, which encouraged shoppers to purchase summer clothing and health and beauty products in preparation for social outings and holidays. Dickinson noted, “Retail sales returned to growth, driven by an increase in food purchases.”
While consumers diverted spending towards holidays and entertainment, sales of indoor goods like furniture and household appliances experienced a decline. This shift highlights changing consumer priorities during the summer period.
With the resolution of election uncertainties, the government is putting forward plans to revive economic growth. Retailers are strategising their investments accordingly. Dickinson mentioned that many are anticipating the Autumn Budget, hoping for an end to rising business rates under the new Labour government and looking forward to detailed plans for a reformed business rates system, as promised in Labour’s manifesto.
Linda Ellett of KPMG added that consumer spending is largely dictated by the household ability to manage increasing costs such as mortgage and rent. She pointed out that wage growth in some sectors is offset by job cuts in others, prompting some consumers to save as a precaution against potential unemployment.
Retail sales have shown resilience with slight growth, but concerns over consumer spending and business rates persist.
