July washout helps drive down retail gross sales
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etail gross sales slowed in July because the washout climate gave shoppers no cause to restock their summer time wardrobes, figures present.
Total UK retail gross sales elevated by simply 1.5% – even making an allowance for excessive inflation – over the 4 weeks to July 29, a marked downturn from the earlier July’s 2.3% development and beneath the three-month common of three.5%, in line with the British Retail Consortium (BRC)- KPMG Retail Sales Monitor.
Food and drink, and objects for the house have been one of the best sellers on the excessive road, whereas the moist climate meant no want to buy summer time garments, with all classes of clothes falling into destructive gross sales territory in what’s often a busy month for trend retailers.
Total meals gross sales elevated by 8.4% – above the 12-month common development of seven.8% – as inflation eased barely from its excessive of 19.2% in March.
Meanwhile, complete non-food gross sales fell by 0.5% over the three months to July, beneath the 12-month complete common development of 0.6%.
Online gross sales continued to slip, falling practically 7% yr on yr, with only a handful of classes corresponding to furnishings, well being and sweetness performing properly.
British Retail Consortium chief govt Helen Dickinson stated: “The slowing pace of retail price inflation fed through into slower sales this July.
“Spend was further depressed by the damp weather, which did no favours to sales of clothing, and other seasonal goods.
“Online spending was down again year on year as the post-Covid trend back to stores continued, leading to the lowest proportion of non-food sales online since the pandemic began.”
Price-conscious shoppers are procuring extra fastidiously, extra conscious of the place bargains may be discovered and what they’re getting for his or her cash
Paul Martin, UK head of retail at KPMG, stated: “As the storm clouds came out, shoppers retreated, with like-for-like sales growth a dismal 1.5% up in July.
“We are starting to see a big rise in the number of promotions that retailers are putting in place in order to get shoppers through the door, as they battle to keep market share.
“Price-conscious consumers are shopping more carefully, more aware of where bargains can be found and what they are getting for their money – which is biting hard into retail margins and profitability.
“UK consumers have been hugely resilient throughout the cost-of-living crisis, but stubbornly high inflation coupled with rapidly rising interest rates will test their ability and willingness to keep on spending for the rest of this year.
“Both consumers and retailers are finding that they are having to get used to doing more with less as conditions remain incredibly challenging.”