Retail sales soared in the UK this July, spurred by a heatwave and the women’s Euro 2025 tournament! ☀️⚽️ According to the Office for National Statistics (ONS), sales volumes jumped by 0.6%, a noticeable bump over what analysts predicted. Online shopping captured the summer vibe, contributing to the highest sales levels since February 2022. Clothing, footwear, and even furniture and electronics sales received a significant boost, making this a sizzling shopping season!
But it’s not all sunshine and sales. Despite the bump in July, overall retail sales actually dipped by 0.6% over three months, with persistent inflation impacting food spending as price hikes hit shoppers hard.
Cande Cooper from Deloitte highlighted that, while inflation remains a challenge, consumers opted for smaller luxuries like new clothes and beauty items, and indulged in memorable experiences. Retailers are encouraged to stay competitive with their pricing, especially as spending is expected to slow down during the third quarter.
Meanwhile, Kris Hamer from the British Retail Consortium pointed out that July’s sales spike was thanks to the sunny weather and exciting sports action, especially boosting sales for alcoholic drinks. Yet, this growth seems small compared to the whopping £7 billion in new costs retailers are dealing with, a leftover shock from last year’s budget.
An interesting tidbit: the ONS had a hiccup that delayed this data release, leading to revisions of previous figures, including June’s now-adjusted 0.3% growth.
As summer winds down, keep an eye out for how these trends evolve, especially with consumers deciphering where to prioritise their spending as cooler months approach. 🍂🛍️