UK retail sales rise, buoyed by football fever

In the five weeks to June 30, UK retail sales rose 1.1% on a like-for-like basis, while total sales were up 2.3%, ahead of the three- and 12-month averages of 1.2% and 1.5% respectively.

According to the BRC-KPMG retail sales monitor, like-for-like food sales rose 0.3% and 1.7% overall over the three months to June.

Over the three months to June, non-food retail sales decreased 0.2% in like-for-like terms but were up 0.8% overall, which marks the second consecutive month of rising sales and the best three-month average since September.

But during that three-month period, in-store non-food sales declined 2.7% and 1.4% in like-for-like and total terms respectively.

Online sales of non-food products grew 8.5% in June, below the three-month average of 9% but above the 12-month average of 7.9%.

BRC chief executive Helen Dickinson said: “Beer, barbecues and big TVs lifted June’s sales as warm weather and World Cup fever gripped the nation.

“However, with consumers engrossed in the agony and ecstasy of each match, spending on many other items fell. In the end, June scored solid, but not sensational, sales.

“The reality is that sales don’t grow on the feel-good factor alone. With household incomes still barely growing faster than inflation, conditions for consumers and retailers remain extremely tough.”

KPMG boss Paul Martin added: “After May’s positive retail performance, June’s results turned out to be less buoyant than hoped for.

“Grocers benefited from the brighter weather and of course the World Cup, with barbecues and picnics firmly on the menu, and the weather and holiday season are also likely to be behind the uptick in online fashion sales too. But with so much attention outdoors, other household categories didn’t fare exceptionally well.

“The summer sunshine, Wimbledon and the ongoing World Cup provide a strong foundation for growth in July, but retailers need to ensure that sales translate into profit. With the structural changes the sector is experiencing, as well as increased costs, this is becoming increasingly difficult to achieve.”