Covering the five weeks 28 May – 1 July
2023
-
UK Total retail sales
increased by 4.9% in June, against a decline of 1.0% in June
2022. This is above the 3-month average growth of 4.6% and the
12-month average growth of 4.0%.
-
UK Like-for-like retail sales increased by
4.2% in June, against a decline of 1.3% in June 2022. This was
below the 3-month average growth of 4.3% and above the 12-month
average growth of 3.6%.
-
Food sales increased 9.8% on a Total basis and
10.1% on a Like-for-like basis over the three months to June.
This is above the 12-month Total average growth of 7.7%. For
the month of June, Food was in growth year-on-year.
-
Non-Food sales increased 0.3% on a Total basis
and decreased 0.5% on a like-for-like basis over the
three-months to June. This is below the 12-month Total average
growth of 0.8%. For the month of June, Non-Food was in growth
year-on-year.
- Over the three months to June, In-store Non-Food
sales increased 2.0% on a Total basis and 0.6% on a
Like-for-like basis since June 2022. This is below the Total
12-month average growth of 3.7%.
-
Online Non-Food sales decreased by 1.0% in
June, against a decline of 9.1% in June 2022. This is shallower
than the 3-month average decline of 2.4% and the 12-month
decline of 3.2%.
- The proportion of Non-Food items bought online (penetration
rate) decreased to 35.3% in June from 35.9% in June 2022.
Helen Dickinson OBE, Chief Executive | British Retail
Consortium
“Retail sales growth ticked up slightly in
June as hot weather prompted purchases of summer essentials.
Sun-seekers headed to their favourite retailers to buy swimwear
and beach towels, and outdoor games, garden furniture and
barbecue food were boosted as families came together to celebrate
Father’s Day. People were much more cautious about big-ticket
purchases like furniture and technology equipment.
“Consumer confidence remains fragile. But, with headline food
inflation easing for two months in a row as prices of essentials
start to fall thanks to stiff competition and consumers
continuing to shift shopping patterns to mitigate as much
inflation as they can, confidence could improve. However,
retailers’ efforts to bring down prices could be derailed by
costly reforms to the packaging levy (Extended Producer
Responsibility) and a new deposit return scheme putting an
inflationary £4bn burden on retailers. A hike to business rates
is also on the cards for next April. Government must look at how
these costly policies will impact inflation and consumers and
think again.”
, UK Head of Retail |
KPMG
“The sun was shining on retailers in
June, with the warm weather bringing consumers back out to the
high street and like for like sales up nearly 5% on last
year.
“Sales of suntan lotion, food and clothing were all given a boost
as consumers made the most of the record June temperatures.
Online sales continued to fall, but at a much lower rate, with
household appliances and gardening equipment proving popular.
“Apart from a blip in May, retail sales growth has remained
steady at around 5% every month in the first half of this
year. However, the growth comes against a background of
much higher inflation levels – resulting in reduced margins and
profitability for operators across the sector.
“As we move into the last half the year, retailers will be hoping
that anticipated falls in inflation start to deliver stronger
sales growth in order to improve the overall health of the
sector. The wild card continues to be food inflation which
remain stubborn, and is having a negative impact on consumers’
ability to spend on non-essential items.
“Consumers have so far remained resilient, but the triple threats
of further interest rate hikes, resolute double digit food
inflation and an economy recovering at slower rate than
predicted, could hamper a return to much needed profitable growth
across the retail sector.”
Food & Drink sector performance | Susan Barratt, CEO
| IGD
“June was yet another month of very high growth in food and drink
sales, driven largely by ongoing inflation. However, there are
signs of better news, with volume sales on the cusp of
registering a positive performance after being almost permanently
negative for the last two years. This was almost certainly
underpinned by the record good weather last month.
“The hot weather in June also helped lift people’s spirits, with
IGD’s Shopper Confidence Index improving to its highest level
since December ’21. This filtered through to how shoppers feel
about food prices, with 30% now expecting food prices to stay the
same or decline in the next year, compared to 16% at the start of
the year. Although we’re far from out of the woods, with 59% of
those with a mortgage or rent saying they will have to cut back
their spending further to absorb the increase in mortgage costs,
compared to 46% in March ’23.”
