England’s march to the final of the Euros men’s football tournament as well as other set piece sports events including Wimbledon and the Paris Olympics gave a helping hand to the high street in July when retail sales bounced back by 0.5% following a slump in June.
The Office for National Statistics (ONS) said turnover at “department stores and sports equipment stores grew strongly with retailers suggesting that summer discounting and sporting events, such as the European football Championship, boosted sales.”
The German hosted Euros lasted for a month with England storming to the July 14 final, which it lost 2-1 to Spain. The Three Lions success in the knock-out stages generated huge excitement across the country.
Today’s data from the ONS, which was in line with City forecasts, does not break down on what the money was being spent but huge numbers of replica shirts and other Euros related products were sold during the period.
However, it added: “These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.”The ONS also revised weather hit sales in June upgrading the fall from 1.2% to 0.9%.
Matt Jeffers, UK retail strategy and consulting managing director for consultants Accenture said: “A hat-trick of the Euros, Wimbledon and Olympics has brought a moderate boost to retail sales in July, helped along by the warmer weather. With holiday season well underway, retailers benefited from a strong performance in department stores and sports equipment.
“Retailers can feel optimistic heading into August, as the ongoing summer holiday period and back-to-school shopping could continue to drive sales. However, the slow start to Spring-Summer will mean many retailers are now juggling inventory and feeling pressure to start clearance sales. They may inevitably have to take a hit to margins in certain areas to maintain this positive momentum into next month.”
Erin Brookes, European Retail and Consumer Lead at consultants Alvarez & Marsal: “The arrival of some sunshine in August, plus the school holidays and the Bank of England’s latest rate cut, should provide a further boost to the high street. The retailers that have been able to hold their nerve on not discounting too heavily early in the season, and that have accurately forecasted demand and merchandised accordingly, will come out on top.”
