Retail sales have seen a boost in July as shoppers spent more on food, while clothing and health and beauty saw a “better month” due to warmer weather.
Total retail sales in the UK in July increased by 0.5% year-on-year, against growth of 1.5% for the same period in July 2023, according to the latest BRC-KPMG retail sales monitor.
This was above the three-month average growth of 0.3% and below the 12-month average growth of 1.4%.
Food sales grew 2.6% year-on-year over the three months to July, compared with a growth of 8.4% in July 2023.
Non-food sales fell 1.7% year on year over the three months to July, against a decline of 0.5% in June last year.
In-store non-food sales fell 2.7% during the three months to July, while online non-food sales increased 0.3% year-on-year.
British Retail Consortium chief executive Helen Dickinson said: “Retail sales returned to growth, driven by an increase in food purchases. The late arrival of British sunshine led to a better month for summer clothing and health and beauty products as shoppers prepared for days out with friends and holidays away.
“However, as consumers spent on holidays and entertainment, sales of indoor goods, such as furniture and household appliances, were squeezed out. This left non-food once again in negative growth, particularly for in-store sales.
“Now that election uncertainty is over and the government is rolling out plans to kickstart economic growth, retailers are planning their own investment strategies.
“Many will be looking to the autumn Budget, keen to see an end to business rates rises under the new Labour government. They will also be looking for any details of the reform of the whole business rates system, promised in Labour’s manifesto.”
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