Warm weather and promotions boost retail sales 3.1% in June
However, the online penetration rate for non-food items remained flat at 36.6%, slightly below the 12-month average of 36.8%
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Total UK retail sales grew by 3.1% year-on-year in June, reversing a 0.2% decline in the same month last year, as the summer heatwave and promotions elevated performance, according to the latest BRC-KPMG Retail Sales Monitor.
It comes as food sales rose 4.1% compared with a 1.8% increase in June 2024, with non-food sales also up 2.2%, having fallen 1.9% in the previous year.
Meanwhile, in-store non-food sales also grew 2.2%, while online non-food sales increased by 2.3%. Both categories had seen declines in June 2024, of 2.6% and 0.7% respectively.
The online penetration rate for non-food items remained flat at 36.6%, slightly below the 12-month average of 36.8%.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Retail sales heated up in June, with both food and non-food performing well. The soaring temperatures increased sales of electric fans while sports and leisure equipment was boosted by both the weather and the start of Wimbledon. Food sales remained strong, though this was in-part driven by food inflation, which has risen steadily over the course of the year.
“The outlook is not all bright and sunny: retailers are watching Government closely for details of the upcoming business rates reform. If the Government includes shops within its new higher rates threshold, then many retailers will be forced to rethink their investment plans.”
She added: “The closure of larger stores would harm the local communities they support, costing jobs and reducing footfall in the area they serve. If Government wants to improve high streets and help local communities, they must ensure that no shop pays more under their new rates reforms.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “Home appliances and homeware purchases helped retail sales to grow in June, as new homebuyers and those having a refresh in their current home took advantage of summer promotions both in-store and online.
“Warm weather and the start of the holiday season led to modest monthly growth for clothing sales. But retailers will be hoping that the buying is not yet complete and that the pace picks up further in July and August as suitcases get packed and the sun hopefully keeps shining.”
