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Gloucestershire Business News

Retail sales fired up by sunny spell

The recent hot weather helped to heat up sales of summer clothing and outdoor toys, new retail figures have confirmed.

Last month, UK retail sales increased by 1.2 per cent on a like-for-like basis from June last year, when they had decreased 0.5 per cent from the preceding year, according to a new report by the British Retail Consortium (BRC).

On a total basis, sales rose by 2.0 per cent last month, against a growth of 0.2 per cent in June 2016, although the figures were below the six-month and 12-month averages of 1.4 per cent.

The BRC's study also found that over the three months to June, food sales increased by 3.6 per cent on a like-for-like basis and 4.7 per cent on a total basis, which is the strongest three-month average since February 2012.

Despite the growth in sales last month, BRC CEO Helen Dickinson said retailers could not afford to be confident that the trend would continue.

"The arrival of summer provided a welcome pick-up to sales growth in June, particularly to non- food categories which saw a reversal in fortunes after a prolonged period of sluggish growth," she said.

"Leisure pursuits and activities spurred consumer spending on summer clothing, beauty products and outdoor toys, which were also boosted by gift purchases over Eid.

"The six-month average, buoyed by June's strong performance, now paints a slightly rosier picture for retail sales.

"But on closer inspection the year on year numbers belie the fact that rising food prices are responsible for the main component of growth and have prompted more cautious spending towards discretionary non-food items.

"Online continues to take the lion's share of growth, although contribution from stores increased slightly in June as it seems shoppers headed out with specific purchases in mind, rather than just to browse.

"Looking ahead, there's a question mark over whether this spending momentum will last, as household expenditure is increasingly squeezed from rising inflation and slowing wage growth.

"The reality is that retailers' efforts in absorbing mounting cost pressures into their margins are already being tested, so the Government must have the consumer front of mind as it enters the UK's trading negotiations with the EU, to avoid any further cost increases to retailers and their customers."

What do you think? Email mark@moosemarketingandpr.co.uk 

Picture credit: pixabay

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