Retail sales up 2.5% in July despite job losses and store closures
To go with this, the online penetration rate, the proportion of non-food items bought online decreased to 34.8% from 35.1% in July 2024
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Retail sales in the UK rose 2.5% in the four weeks ended 2 August against a growth of 0.5% in July 2024, according to the latest data from the British Retail Consortium (BRC).
As part of this increase, food sales rose 3.9% year-on-year in July, beating a tough comparative of 3.3% in July 2024. This increase was also above the 12-month average growth of 3.2%.
Furthermore, non-food sales increased by 1.4% year on year, compared with a decline of 1.8% in July 2024. This 1.4% increase was above the 12-month average growth of 0.8%.
In-store non-food sales saw an increase of 1.9% year-on-year, against a decline of 3% in July 2024. This was well above the 12-month average growth of 0.2%.
Moreover, online non-food sales increased 0.3% year-on-year, against a growth of 0.3% in July 2024. However, this was below the 12-month average growth of 1.9%.
To go with this, the online penetration rate, the proportion of non-food items bought online decreased to 34.8% from 35.1% in July 2024, below the 12-month average of 36.7%.
BRC CEO Helen Dickinson said: “Food sales did well in early July thanks to warm weather and a packed sporting schedule, though this momentum failed to hold for the rest of the month. Rising food inflation meant increased spending was more a result of higher prices than improved demand.
“Fashion sold well early in the month, but deteriorated as weather worsened, while homeware and indoor furniture grew steadily, recovering from the previous year’s decline. Gaming and toys sold particularly well, as nostalgic adults purchased products like Lego.”
Linda Ellett, UK head of consumer, retail and leisure, KPMG, added: “The UK’s fifth warmest July on Met Office record brought a boost to home appliance and food and drink sales. But rising inflation was also a driver of the latter and monthly non-food sales are only growing at around 1% on average at present. With employment costs having risen and inflation both a business and consumer side pressure, it remains a challenging trading environment for many retailers.
“While the majority of consumers that KPMG surveys are confident in their ability to balance their monthly household budgets, big ticket purchases are more considered in the context of rising essential costs and ongoing caution about the economy and labour market.”
