June provided some light in the midst of what could be a long and gloomy tunnel for retailers and consumers alike.
Retail sales volumes climbed 0.6% last month and 1.5% across the quarter, according to the Office for National Statistics, as retailers made hay while the sun shone during June.
But after seemingly putting any general election and Brexit anxieties to one side, will consumers continue to look on the bright side and keep spending?
“We still expect pressures facing households to intensify in the coming months,” Retail economics chief executive Richard Lim says.
“Real earnings are expected to remain in negative territory for the remainder of the year. Retailers will be hoping shoppers remain resilient in the face of further uncertainty.”
With warmer weather contributing to a 6.2% spike in fashion sales last month, retailers will be crossing fingers for a sizzling August.
Elsewhere today, a pair of interesting people moves saw M&S hire former Morrisons exec Gordon Mowat and the Co-op name Jo Whitfield as the new boss of its food business, while Shop Direct owners the Barclay brothers scrapped plans to sell the etailer.
Quote of the day
“EBITDA expectations have risen nicely today and whilst the shares are likely to bathe in the glow of these higher forecasts for now, we are concerned that Sports Direct is trying to whistle and drink.”
Peel Hunt analyst Jonathan Pritchard’s verdict on Sports Direct’s full-year update
Today in numbers
58.7%
The slump in underlying pre-tax profit suffered by Sports Direct in the year to April 30.
161p
The share price set by fashion chain Quiz ahead of its float on AIM.
Tomorrow’s agenda
With no stock exchange updates planned, be sure to check out the latest episode of The Retail Week as the team review the big stories from the past seven days.
Luke Tugby, head of content
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