UK Homewares Sector Report summary
August 2023
Period covered: Period covered: 02 – 29 July 2023
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Homewares sales
Homewares sales increased by xx% YoY in July, according to the Retail Economics Retail Sales Index.
Retail Economics estimates Homewares inflation was in the region of xx% YoY in July, while ONS data shows the wider Households Goods category faced xx% YoY shop price inflation in the month, pointing to a decline in sales volumes.
Tough macroeconomic conditions
Homewares sales volumes declined in July despite weak comparatives. This follows a period of strong growth during the pandemic.
Although overall inflation eased to 6.8% in the month, it remained ahead of economists’ predictions, with high prices of essentials continuing to curb discretionary spending.
Soft spending has been compounded by successive interest rate rises, spelling trouble for mortgagers, and pushing households to cut back further on their spending.
GfK’s consumer confidence index fell by a sharp six points to -30 in July as a result, following six months of steady improvement since the beginning of the year (GfK), reflecting waning consumer resilience in the face of persistent macroeconomic challenges.
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Homewares sales volumes remain in decline.
Source: ONS, Retail Economics analysis
