Retail sales slumped in June to levels not seen since the depths of the pandemic.
Total sales declined 1% against a rise of 10.4% in the same month the previous year, according to the latest data from the BRC-KPMG Retail Sales Monitor.
On a like-for-like basis, UK retail sales dropped 1.3% year on year.
This was above the three-month average decline of 1.5% but below the 12-month average growth of 1%.
Over the three-month period to June, food sales increased 2.2% on a total basis and 1.6% on a like-for-like basis. Food was in growth for the month of June.
Non-food sales, meanwhile, decreased 3.3% on a total basis and 4.2% on a like-for-like basis over the same three-month period as consumers favoured essential items. Non-food was in decline for the month of June.
The balance between online and offline shopping for non-food items shifted in June. In-store sales of non-food items increased 2.2% on a total basis and 0.6% on a like-for-like basis year on year, while online non-food sales decreased by 9.1% in June against a decline of 5.9% in June 2021.
The online penetration of non-food also slowed from 43.3% in June 2021 to 39.4% this June.
British Retail Consortium chief executive Helen Dickinson said: “Sales volumes are falling to a rate not seen since the depths of the pandemic as inflation continues to bite and households cut back spending.
“Discretionary purchases were hit hard, especially white goods and homeware, while consumers also traded down to cheaper brands in food and non-food alike. While the Jubilee weekend gave food sales a temporary boost and fashion sales benefited from the summer holiday and wedding season, this was not enough to counter the substantial slowdown in consumer spending.
“Retailers are caught between significant rising costs in their supply chains and protecting their customers from price rises. The government needs to get creative and find ways to help relieve some of this cost pressure – the upcoming consultation on transitional relief is a golden opportunity to ensure that retailers aren’t overpaying on their business rates bills.
“Government action on transitional relief would make a meaningful difference to retailers’ costs and ease pressure on prices for customers.”
KPMG UK head of retail Paul Martin added: “As the cost-of-living crisis continues to deepen, retailers face walking a fine line between protecting margins and further denting consumer confidence by passing on price rises while negotiating with their suppliers to share the cost increases.
“Cost and efficiency will dominate retailers’ agendas as they are forced to make some tough decisions on which products make it to the shelves in order to remain price-competitive for consumers.
“With a long run of hot weather predicted and many consumers choosing to holiday at home this summer, retailers will be hoping that the feel-good factor begins to improve confidence among some shoppers – as presently overall confidence levels are lower than sales may suggest.”
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