UK retail sales returned to growth last month, although the uplift was a record low for July as continuing political and economic uncertainty took its toll on consumer spending.
The data from the BRC-KPMG Retail Sales Monitor shows total sales edged 0.3% in July, having contracted by 1.3% in June. However, the latest figure compares to an increase of 1.6% in the same month last year and was the lowest growth recorded for the month of July since the BRC began compiling the data in 1995.
On a like-for-like basis, sales were up just 0.1% year-on-year.
Over the three months to July, food sales dropped by 1% on a like-for-like basis and by 0.3% on a total basis. During the same period, non-food retail sales slipped 2% on a like-for-like basis and by 2.1% on a total basis.
Helen Dickinson Chief Executive of the British Retail Consortium, commented: “While retailers will welcome the return to growth, it has nonetheless been a punishing few months for the industry. The combination of slow real wage growth and Brexit uncertainty has left consumer spending languishing with the 12-month average total sales falling to a new low of just 0.5%.
“Whereas last year’s glorious sunshine and World Cup Finals led to strong consumer demand over the summer, this year has been weak in comparison, with both June and July showing the lowest sales on record for their respective months. And it is not just high streets that are suffering, with Non-food online growth also one percentage point below the 12-month average.
“The challenging retail environment is taking its toll on many high street brands who must contend with rising import costs, a multitude of public policy costs, and ever higher business rates. A coherent strategy for retail is needed. The Government should freeze future business rates rises and fix the appeals system before embarking on a wholesale reform of this broken tax system.”
