Retail spending heats up in June due to warm weather

UK retailers saw sales lift higher in June as warmer weather helped drive more shoppers onto the high street, according to new figures.

Fresh data from the British Retail Consortium (BRC) showed shopping activity swung higher for the month as sales of fans and sportswear rose sharply due to the recent hot spell and sporting events such as Wimbledon.

The monthly BRC-KPMG retail sales monitor revealed that total UK retail sales increased by 3.1% in June year-on-year, compared with a 0.2% in the same month a year earlier.

This was also particularly buoyed by an increase in food sales, which grew by 4.1% for the month on the back of accelerating price inflation.

Food inflation

Recent figures from the trade group showed that food inflation increased to 3.7% in June, while fresh food was 3.2% more expensive than a year ago.

The BRC found that non-food sales increased by 2.2% in June, with similar rates of growth across online and in stores.

Helen Dickinson, chief executive of the BRC, said: “Retail sales heated up in June, with both food and non-food performing well.

“The soaring temperatures increased sales of electric fans while sports and leisure equipment was boosted by both the weather and the start of Wimbledon.

“Food sales remained strong, though this was in part driven by food inflation, which has risen steadily over the course of the year.”

Refresh

Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “Home appliances and homeware purchases helped retail sales to grow in June, as new homebuyers and those having a refresh in their current home took advantage of summer promotions both in-store and online.”

Nevertheless, similar spending data from Barclays painted a slightly different picture, pointing towards a marginal dip in monthly spending.

It reported that consumer card spending was 0.1% lower in June, as essential spending dropped for the month.

Barclays said essential spending was down 2.1% for the month, according to its card data, despite the improvement in weather.

It, however, highlighted that sporting events and festivals helped drive an uptick of non-essential spending, with entertainment, hotels and travel spending all higher.

The figures also showed that furniture retailers saw a strong month, with an 8.2% increase in sales.

The overall dip came despite surveyed customers indicating that their confidence about their finances is at its strongest level for four months.

Karen Johnson, head of retail at Barclays, said: “Despite the warm weather, which usually boosts non-essential sectors such as retail and hospitality, consumers spent cautiously in June, prioritising value as they navigate economic uncertainty.

“Encouragingly, entertainment, beauty and furniture stores bucked the trend, while confidence in household finances improved, showing consumers’ willingness to spend on the things that matter most to them.”