​June retail sales rise as warm weather drives consumer spending

Total retail sales grew 4.9% in June, compared with a fall of 1% in June 2022, according to the BRC-KPMG Retail Sales Monitor.

This was above the three-month average growth of 4.6% and the annual average growth of 4%.

Like-for-like sales increased by 4.2% in June, against a decrease of 1.3% in the same month last year. This was below the three-month average growth of 4.3% and above the 12-month average growth of 3.6%.

Food sales grew 9.8% on a total basis and rose 10.1% on a like-for-like basis over three months. Non-food sales grew 0.3% on a total basis and declined 0.5% on a like-for-like basis over three months.

In-store non-food sales over three months to June increased 2% on a total basis and 0.6% on a like-for-like basis since June 2022.

Online non-food sales edged down 1% in June against a decline of 9.1% in June 2022.

British Retail Consortium chief executive Helen Dickinson said: “Retail sales growth ticked up slightly in June as hot weather prompted purchases of summer essentials. 

“Sun-seekers headed to their favourite retailers to buy swimwear and beach towels, and outdoor games, garden furniture and barbecue food were boosted as families came together to celebrate Father’s Day. People were much more cautious about big-ticket purchases like furniture and technology equipment.

“Consumer confidence remains fragile. But, with headline food inflation easing for two months in a row as prices of essentials start to fall thanks to stiff competition and consumers continuing to shift shopping patterns to mitigate as much inflation as they can, confidence could improve. 

“However, retailers’ efforts to bring down prices could be derailed by costly reforms to the packaging levy (Extended Producer Responsibility) and a new deposit return scheme putting an inflationary £4bn burden on retailers. 

“A hike to business rates is also on the cards for next April. The government must look at how these costly policies will impact inflation and consumers and think again.”