Ryan FowlerUK total retail sales increased by 3.1% year on year in June, according to the British Retail Consortium, marking a strong rebound from the 0.2% decline recorded in June 2024.
Food sales rose 4.1% compared to a 1.8% increase last year, while non-food sales were up 2.2%, reversing a 1.9% decline in June 2024. In-store non-food sales mirrored the overall growth, rising 2.2%, and online non-food sales also grew by 2.3%.
The online penetration rate for non-food items held steady at 36.6%, unchanged from the same period last year and slightly below the 12-month average of 36.8%.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Retail sales heated up in June, with both food and non-food performing well. The soaring temperatures increased sales of electric fans while sports and leisure equipment was boosted by both the weather and the start of Wimbledon. Food sales remained strong, though this was in-part driven by food inflation, which has risen steadily over the course of the year.
“The outlook is not all bright and sunny: retailers are watching Government closely for details of the upcoming business rates reform. If the Government includes shops within its new higher rates threshold, then many retailers will be forced to rethink their investment plans. The closure of larger stores would harm the local communities they support, costing jobs and reducing footfall in the area they serve. If Government wants to improve high streets and help local communities, they must ensure that no shop pays more under their new rates reforms.“
Linda Ellett, UK head of consumer, retail and leisure at KPMG, added: “Home appliances and homeware purchases helped retail sales to grow in June, as new homebuyers and those having a refresh in their current home took advantage of summer promotions both in-store and online. Warm weather and the start of the holiday season led to modest monthly growth for clothing sales. But retailers will be hoping that the buying is not yet complete and that the pace picks up further in July and August as suitcases get packed and the sun hopefully keeps shining.”
Sarah Bradbury, CEO at IGD, said: “Shopper confidence fell back this month but stayed marginally above zero, landing at just 1. Escalating global tension and economic pressures left shoppers feeling uncertain in the year ahead. Notably, the number of shoppers expecting food prices to get much more expensive rose from 14% to 20%, reflecting renewed inflation concerns. Value sales growth continues to be predominately driven by inflation with volumes under sustained pressure. However, the arrival of new summer ranges and improved weather presents retailers with opportunities to tap into more consumer occasions, particularly amongst higher income shoppers who remain focused on quality.”
