Retail sales inch up in July boosted by online promotions

By value, retail sales excluding fuel grew 5.7% year-on-year, according to the latest retail sales data from the Office for National Statistics.

Retail sales by volume dropped by 3% compared to a year earlier.

Month-on-month, retail sales volumes grew 0.3% in July, up from a decline of 1.2% in June.

This was driven by an increase in non-store sales, which jumped 4.8%, as promotional activity from online retailers boosted consumer demand.

By volume, food store sales inched up 0.1% in July – supermarket sales were unchanged but there was an uptick in specialist food store sales such as butchers and bakers, up 4.7% over the month.

Food store sales have been on a downward trend since the reopening of hospitality in summer 2021 and retailers have noted a decline in volumes sold in recent months as rising prices hit customers’ wallets.

Non-food store sales dropped 0.7% over the month, driven by a decline in clothing sales and at other non-food stores such as antique and secondhand stores, down 1.2% and 1.5% respectively.

The proportion of retail sales online rose to 26.3% in July, up from 25.3% in June, but still was well below its peak of 37.5% in February 2021.

BRC chief executive Helen Dickinson said: “The summer sunshine brought a slight uplift in sales. Summer clothing, air conditioning appliances and outdoor foods all benefitted from record temperatures, but most retailers will still be seeing falling volumes in the face of rising inflation.

“Consumer confidence has hit new lows as inflation soared past 10% and talk of a recession has grown. The Bank of England expects inflation to reach over 13% in October when energy bills rise again, further limiting discretionary spending for struggling households. For many businesses, 2022 is proving to be every bit as challenging as the pandemic.”

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