UK retail sales slumped last month as cold weather deterred shoppers from buying summer clothing and gardening supplies, despite pressure easing on households amid a slowdown of inflation.
The latest snapshot from the British Retail Consortium showed a 0.2% drop in total UK retail sales compared against June last year.
Highlighting the pressure on retailers amid a wider slowdown in spending as households grapple with the cost of living crisis, the trade body blamed the drop on unseasonably cold weather.
“Retail sales performed poorly in June as the cooler weather during the first half of the month dulled consumer spending,” said the BRC’s chief executive, Helen Dickinson.
“Sales of weather-sensitive categories such as clothing and footwear, as well as DIY and gardening were hit particularly hard, especially compared to the surge in spending during last June’s heatwave.”
The gloomy consumer outlook comes as high Bank of England interest rates continue to weigh on household spending power. While inflation has returned to the 2% target set by the government, prices still remain significantly higher than before the cost of living crisis took hold.
Separate figures from Barclays also released on Tuesday showed card spending fell 0.6% in June, the first decline since February 2021, as cold weather sapped consumer demand and forced some fashion brands to adjust their sales schedules.
However, it said entertainment had remained a staple among Britons, with strong growth in spending on pub visits, takeaways and digital streaming services.
Experts said some of the sales weakness could be explained by the year-on-year comparison with June 2023, when sales had been particularly strong. Sarah Bradbury, the chief executive of the data provider IGD, said hot weather in the final week of June this year helped to boost spending.
“While the election campaign has not impacted shopper confidence during June, we might expect to see a boost following the election. We have seen a positive bump for shopper confidence immediately following the three previous general elections, therefore we should expect something similar as we move through July,” she added.
The BRC said it expected retail sales to bounce back over the coming months, helped by the men’s Euro 2024 tournament.
“Electronics sales had a better month as football fans cheering on their national teams upgraded their home entertainment systems and people replaced their pandemic purchases,” she added. “Retailers remain hopeful that as the summer social season gets into full swing and the weather improves, sales will follow suit.”
