- Retail sales up 1.1% over the summer, but down 0.5% in July as the energy price cap edged higher
- Shoppers brought forward some summer spend to take advantage of sales and enjoy the long hot summer
- Households splashed out on food and alcohol in July as the World Cup gave people an opportunity to party, but clothing sales petered out
Danni Hewson, AJ Bell head of financial analysis, comments on the latest UK retail sales figures:
“It’s true that looking at one month’s data in isolation can give us only half the picture but July’s larger than expected fall in retail sales, coupled with June’s growth being revised down, suggests this is a sector whose resilience is being sorely tested.
“The uncomfortably hot weather over the summer has been a mixed blessing for retailers as many shoppers got out early in the season to take advantage of sales and promotions to kit out homes and wardrobes to make the most of the sunshine.
“But there are only so many pairs of office appropriate shorts and flowy dresses people need to make it through the summer season and July’s sharp drop in clothing and footwear sales was exacerbated by online retailers and homeware stores which also saw declines.
“High street footfall has suffered as people shunned uncomfortable excursions and instead flocked to anywhere with air conditioning.
“Supermarkets were the real winners in July as World Cup dreams were kindled, and fans stocked up on alcohol and tasty treats to enjoy the fleeting moment with friends and family.
“But hidden under all the optimism was a nervous consumer worried about the increase in the energy price cap and the ever-changing price at the petrol pump and that’s a problem that is likely to be exacerbated as the year progresses.”
