Retail sales bounced back last month as England’s run in the Euros helped the sector recover from the wet weather and election uncertainty earlier in the summer.
Data from the Office for National Statistics (ONS) shows retail sales volumes rose by 0.5% in June, following a revised 0.9% contraction in the previous month.
The rebound was led by increases in department stores (+4%) and sports equipment shops (+3.5%) as both the football tournament and discounting boosted sales.
However, sales at clothing and household goods shops dropped 0.6%, while food sales were unchanged.
Alex Kerr, economist at consultancy Capital Economics, noted that while the rise in sales in July “wasn’t particularly broad-based”, they would continue to strengthen as “lower inflation continues to support real incomes and bolsters consumer confidence”.
Meanwhile, Kien Tan, senior retail adviser at consultancy PwC UK, highlighted that temperatures had been unusually cool in the first half of July and that the onset of better weather in August finally would “be better news for grocery and fashion”.
He added: “The more favourable economic backdrop of higher wages, lower inflation and lower interest rates augur well for spending more widely in the run-up to Christmas.”
NAM Implications:
- The rise in sales in July “wasn’t particularly broad-based”.
- This says it all: some improvement.
- Best check for realisation of your fair share of sales…
- …and hunker down for another month, in hope.
