UK Retail Sales in June up almost 3%, sunshine, barbecues and discounts

Retail sales in June were up by 2.8% in volume terms compared to prior year and up by just 2.5% in value according to the latest data from the Office for National Statistics. The British Retail Consortium (BRC) claimed the latest data confirmed the BRC's results for June, suggesting sunshine, barbecues and clearance sales boosted June's spending.

BRC retail sales had increased by 1.4% on a like for like basis. Food sales were helped by the hot sunny weather as the UK dusted off the barbecues. Clearance sales boosted clothing, footwear and outdoor leisure but big-ticket homewares and furniture sales remained difficult. Non-store sales (internet, mail-order and phone sales) in June were 16.8% higher than a year ago.

The ONS data confirms the pattern. Non store sales were up by 10% in volume, but household related items were down by 5%. Clothing and footwear sales were up by 11% in volume but only 4% in volume reflecting widespread discounting. Food sales were up by 2.5% (volume) and 6.5% in value. Barbecue burgers and kebabs not cheap presumably.

Stephen Robertson, BRC Director General, said: "The official data confirm our findings that June's retail sales were boosted by sunshine, promotions and discounts. But the wholesale turnaround in consumer confidence retailers are looking for remains elusive. “Lower mortgage costs and energy prices are leaving a lot of people better off than a year ago. But many still favour saving over spending."

ONS Retail Sales June 2009.
British Retail Consortium

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