UK Retail Sales Report summary
July 2023
Period covered: Period covered: 28 May – 1 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.
Retail sales
Retail sales rose by 00% YoY in June according to the Retail Economics Retail Sales Index, against a 00% uplift in the previous year.
Key factors impacted headline performance in the month:
Record temperatures: Temperatures 2.5 degrees Celsius above average for June lifted sales of summer essentials and accelerated footfall to stores.
Father’s Day: Food sales were boosted by Father's Day on 18 June, as families came together for barbecues and gatherings in the good weather.
Sports and events: Festivals, concerts and sports are making a strong comeback as consumers remain determined to spend on areas missed out on during the pandemic; seeing fashion and cosmetics in demand.
Record pay growth: Although inflation remains strong at 7.9% in June, the latest data shows earnings continue to grow at a record pace (outside of pandemic exceptionals), with regular pay rising 7.3% in the quarter to May.
Rising base rate: Strong wage growth and sticky core inflation saw the Bank of England raise interest rates 50 basis points to 5.0% on 22 June, marking the thirteenth consecutive hike and the highest rate in 15 years.
Soft annual comparisons: Weak sales growth last year is creating soft annual comparisons, helping to disguise underlying weak growth amid strong inflation
‘Feel good’ factors despite economic backdrop
The economic backdrop continues to challenge underlying spending, but June proved to be an exceptional month for key feel good factors among consumers.
The hottest June on record – with temperatures 2.5 degrees Celsius above normal – brought amber heat alerts over the second and final weekend of the month, with temperatures topping 30 degrees.
This coincided with a strong resurgence in festivals, sports and events, including Glastonbury, BST Hyde Park and Mighty Hoopla, as well as sports fixtures such as the FA Cup, Champions League Final and Royal Ascot among others.
Households enticed out-of-home brought a better-than-expected increase in footfall across retail destinations in June. In the month, footfall rose 3.7% from May and 4.2% compared to the previous year (MRI Springboard). High streets saw an annual increase of 5.2% YoY, while shopping centres were up 4.4% and retail parks up 1.8%.
Take out a FREE 30 day membership trial to read the full report.
Retail volumes have been in decline since March 2022
Source: ONS, Retail Economics analysis
