Retail sales slowed in July as damp weather ‘did no favours to sales’

Total retail sales in the UK increased by 1.5% in July, as compared to 2.3% in the same month last year, according to the BRC-KPMG Retail Sales Monitor.

The growth was below the three-month average of 3.5% and the 12-month average of 3.9%.

Like-for-like sales grew by 1.8% in July slightly above the growth of 1.6% during the same month last year. However, growth remained below the three-month average of 3.3% and the 12-month average of 3.6%.

Food was in growth year-on-year with sales increasing 8.4% on a total basis and 8.7% on a like-for-like basis in the three months to July. This is above the 12-month average growth rate of 7.8%. 

Non-food was in decline year on year with sales decreasing 0.5% on a total basis and 0.8% on a like-for-like basis in the three months to July. This is below the 12-month total average growth rate of 0.6%. 

Total in-store non-food sales grew 1.2% and 0.8% on a like-for-like basis over the three months to July. This is below the total 12-month average growth of 3.4%. 

Online non-food sales decreased by 6.9% in July as compared to 3.9% in July 2022 representing a steeper than the three-month average decline of 3.4% and the 12-month decline of 3.4%. 

BRC chief executive Helen Dickinson said: “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.

“While consumer confidence is generally improving, it remains below longer-term levels. And with last week’s rise in interest rates pushing mortgage rates up ever higher, the government must get a handle on the economy, offering a solution to languishing GDP growth in a way that supports both households and businesses.  

“Only by creating the economic conditions for future growth, will we see a meaningful improvement in the outlook.”