BRC: Retail sales shine in June

Responding to the latest ONS Retail Sales Index figures, Harvir Dhillon, Lead Economist at the British Retail Consortium, said:

Retail sales in June had a strong month overall as widespread summer discounting was rolled out. Summer clothing and electrical household appliances, in particular fans and air conditioning, sold well as people looked for ways to fight the heat. A lot of this shopping took place online as the share of internet sales rose to its highest since April 2021 at 29.4%. Computing sales also saw solid growth, which was thanks to strong demand following a series of new product launches.

While retailers have been enjoying the boost to sales, there are challenges ahead, particularly as hostilities in the Middle East resume. Household budgets remain under pressure, consumer confidence is fragile, and retailers are facing rising operating costs. To support growth and keep inflation under control, Government should address the taxes and levies that increase businesses' energy bills. Otherwise, rising costs will continue to constrain investment and make it harder for retailers to keep prices low for customers in the future.