UK retail sales soar in June, outpace yearly average growth: BRC-KPMG

Moreover, like-for-like retail sales, which compares sales at stores open for more than a year, surged by 4.2 per cent in June 2023, bouncing back from a 1.3 per cent decline in June 2022. This growth is slightly below the three-month average increase of 4.3 per cent, but it surpasses the twelve-month average expansion of 3.6 per cent.

The non-food sales sector saw a mild increase of 0.3 per cent on a total basis over the three months to June, but experienced a slight drop of 0.5 per cent on a like-for-like basis. These numbers fall below the twelve-month total average growth of 0.8 per cent. Non-food sales were in growth year-on-year for June 2023, as per the sales monitor.

In-store non-food sales increased by 2 per cent on a total basis and 0.6 per cent on a like-for-like basis over the three months to June. However, these numbers remain below the total twelve-month average growth of 3.7 per cent.

On the digital front, online non-food sales in June decreased by 1 per cent, which is an improvement from the 9.1 per cent decline witnessed in June 2022. This decrease is less sharp than the three-month average decline of 2.4 per cent and the twelve-month decline of 3.2 per cent. Concurrently, the penetration rate of non-food items bought online dipped slightly to 35.3 per cent in June 2023 from 35.9 per cent in the same month last year.

“Retail sales growth ticked up slightly in June as hot weather prompted purchases of summer essentials. Sun-seekers headed to their favourite retailers to buy swimwear and beach towels. Consumer confidence remains fragile. Retailers’ efforts to bring down prices could be derailed by costly reforms to the packaging levy and a new deposit return scheme putting an inflationary £4 billion burden on retailers,” said Helen Dickinson OBE, chief executive, British Retail Consortium.

“The sun was shining on retailers in June, with the warm weather bringing consumers back out to the high street and like for like sales up nearly 5 per cent on last year. Sales of clothing were given a boost as consumers made the most of the record June temperatures.  Online sales continued to fall, but at a much lower rate. Apart from a blip in May, retail sales growth has remained steady at around 5 per cent every month in the first half of this year.  However, the growth comes against a background of much higher inflation levels, resulting in reduced margins and profitability for operators across the sector,” said Paul Martin, UK head of retail, KPMG.

Fibre2Fashion News Desk (DP)