Covering the four weeks 30 June – 27 July
2024
-
UK Total retail sales
increased by 0.5% year on year in July, against a growth of
1.5% in July 2023. This was above the 3-month average growth of
0.3% and below the 12-month average growth of 1.4%.
-
Food sales increased 2.6% year on year over
the three months to July, against a growth of 8.4% in July
2023. This is below the 12-month average growth of 5.3%. For
the month of July, Food was in growth year-on-year.
-
Non-Food sales decreased 1.7% year on year
over the three-months to July, against a decline of 0.5% in
July 2023. This is above the 12-month average decline of 1.8%.
For the month of July, Non-Food was in decline
year-on-year.
-
In-store Non-Food sales over the three months
to July decreased 2.7% year on year, against a growth of 1.2%
in July 2023. This is below the 12-month average decline of
1.7%.
-
Online Non-Food sales increased by 0.3% year
on year in July, against an average decline of 6.9% in July
2023. This was the same as the 3-month average increase of 0.3%
and above the 12-month average decline of 2.0%.
- The online penetration rate (the proportion
of Non-Food items bought online) increased to 35.5% in July from
34.9% in July 2023. This was below the 12-month average of 36.3%.
Helen Dickinson OBE, Chief Executive
of the British Retail Consortium, said:
“Retail sales returned to growth, driven by an increase in food
purchases. The late arrival of British sunshine led to a better
month for summer clothing and health & beauty products as
shoppers prepared for days out with friends and holidays away.
However, as consumers spent on holidays and entertainment, sales
of indoor goods, such as furniture and household appliances, were
squeezed out. This left non-food once again in negative growth,
particularly for in-store sales.
“Now that election uncertainty is over and Government is rolling
out plans to kickstart economic growth, retailers are planning
their own investment strategies. Many will be looking to the
Autumn Budget, keen to see an end to business rates rises under
the new Labour government. They will also be looking for any
details of the reform of the whole business rates system,
promised in Labour's manifesto.”
Linda Ellett, UK Head of Consumer, Retail & Leisure,
KPMG, said:
“While summer staples, such as health, beauty, and gardening
products have helped to drive retail sales growth both online and
in-store in July, the upturn is likely much less than retailers
were hoping for at this key time of the year. A busy summer
of televised sport has played a beneficial role in increasing TV,
mobile and tablet sales over the last two months, but there's
little evidence of other big ticket purchases taking place.
“Spending levels continue to be governed by whether households
have been able to absorb the likes of mortgage and rent
increases, or had to limit their spend elsewhere as a
consequence. Also, while some sectors are seeing wage
growth, others are cutting posts - leaving some consumers mindful
that they may need to fall back on savings if they find
themselves out of work.
“ONS data for the first quarter of 2024 shows a growing average
percentage of household income being put into savings. But
it's looking increasingly likely that the retail sector will see
a gradual drip effect from those choosing to spend some, rather
than the spending taps suddenly being turned on full.”
Food & Drink sector performance | Sarah Bradbury,
CEO, IGD, said:
“Shopper confidence rose nine points
in the days immediately after the election, while England's
success at the Euros inspired a nine-point increase in focus on
quality. Although, they have both fallen back in line since.
Further good news comes from July's volumes which were higher
than they were last year, marking three consecutive months of
year-on-year volume growth for the grocery market.
“Grocery sales in July were higher than last year, with sales
particularly strong in the final two weeks of the month,
undoubtedly helped by the mini heatwave the UK enjoyed at the
time which saw the hottest day of the year recorded so far.
“While the new Government sets expectations around change taking
time, shoppers are adjusting their outlook. As Labour lay out
their plans for the years ahead, we expect to see further
divergence in experience.
“An August heatwave and GB's successes at the Olympics are likely
to cause a short-term uplift in confidence and therefore more
trade-up opportunities as we've previously seen at the Euros.
This would continue a three-month trend of continued growth for
grocery, as spurred on by the weather.”
