Beer, BBQs and big TVs lift June sales

In June, UK retail sales increased by 1.1 per cent on a like-for-like basis from June 2017, when they had increased 1.2 per cent from the preceding year.

The latest figures from the British Retail Consortium (BRC) and KPMG showed that on a total basis, sales increased 2.3 per cent in June, against an increase of 2 per cent in June 2017.

Over the three months to June, in-store sales of non-food items declined 1.4 per cent on a total basis and 2.7 per cent on a like-for-like basis. This is an improvement over the 12-month total average decline of 2.4 per cent.

Over the three months to June, non-Food retail sales in the UK decreased 0.2 per cent on a like-for-like basis, but increased 0.8 per cent on a total basis. This is higher than the 12-month total average decrease of 0.1 per cent and the best three-month average since September.

Online sales of non-Food products grew 8.5 per cent in June, against a growth of 10.1 per cent in June 2017. This is below the three-month average of 9 per cent but above the 12-month average of 7.9 per cent.

The online penetration rate also rose from 22.3 per cent in June 2017 to 23.3 per cent in June 2018.

Helen Dickinson, chief executive of the BRC, explained that beer, barbeques and big TVs lifted June’s sales, as warm weather and world cup fever gripped the nation.

“However, with consumers engrossed in the agony and ecstasy of each match, spending on many other items fell,” she added.

“With household incomes still barely growing faster than inflation, conditions for consumers and retailers remain extremely tough – and things could get tougher: once the euphoria of sporting success subsides, without a deal on Brexit, shoppers face the prospect of significant price increases and shortages of everyday goods.”

Paul Martin, head of retail at KPMG, said retailers need to ensure that sales translate into profit. “With the structural changes the sector is experiencing, as well as increased costs, this is becoming increasingly difficult to achieve.”

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