Boost for UK retail sales

It seems sunny weather has buoyed the retail sector, with the latest data showing sales from June into early July were up across the board compared to the same period last year.

The BRC-KMPG Sales Monitor report shows total UK sales were up 3.1%, compared to a decline of 0.2% in 2024.

Of these, food sales increased by 4.1% against growth of 1.8%, non-food sales increased 2.2% against a decline of 1.9%, in-store non-food sales increased by 2.2% against a decline of 2.6%, and online non-food sales increased by 2.3%, against a decline of 0.7%.

The online penetration rate (the number of non-food items bought online) of 36.6% was unchanged compared to the same period in 2024.

Soaring temperatures increased sales of electric fans, while sports and leisure equipment were boosted by both the weather and the start of Wimbledon, noted Helen Dickinson, chief executive of the British Retail Consortium (BRC). “Food sales remained strong, though this was in-part driven by food inflation, which has risen steadily over the course of the year,” she added.

Though, Helen continued, the outlook isn’t all sunshine and rainbows, as retailers watch the Government closely for details of the impending 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 said. “The closure of larger stores would harm the local communities they support, costing jobs and reducing footfall in the area they serve.”

Helen continued, “If Government wants to improve high streets and help communities, they must ensure no shop pays more under their new rates reforms.”

Linda Ellett, UK head of consumer, retailer and leisure at KPMG, said home appliances and homeware purchases helped greatly with sales growth in June, as new homebuyers and those refreshing their current homes 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.”

Commenting further on the performance of the food and drink sector, Sarah Bradbury, CEO of IGD, said, “Shopper confidence fell back this month, but stayed marginally above zero, landing at just one.” Escalating global tensions and economic pressures, she added, have left shoppers feeling uncertain about the year ahead, and the number of shoppers expecting food prices to increase has risen from 14% to 20%, reflecting renewed inflation concerns.

“Value sales growth continues to be predominately driven by inflation, with volumes under sustained pressure, however, the arrival of new summer ranges and improved weather presents retailers with opportunities to tap into more consumer occasions, particularly amongst higher income shoppers who remain focused on quality,” she added.