THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Retail sales growth slows in June

UK retail sales recorded the slowest total growth rate in three years in June as consumers’ concerns over a potential rise in interest rates came to the fore.

GENERAL MERCHANDISE

Retail sales growth slows in June

UK retail sales recorded the slowest total growth rate in three years in June as consumers’ concerns over a potential rise in interest rates came to the fore.

According to figures released by the British Retail Consortium, sales were up 0.6% year-on-year on a total basis but on a like-for-like basis sales fell by 0.8%

Excluding Easter distortions, this was the lowest total growth recorded since May 2011. However, the three-month average of 2.6% was in line with the twelve-month average of 2.5%.

David McCorquodale, head of retail at KPMG, said: "Concern over a potential rise in interest rates is having a dampening effect on retail sales.  June saw the brakes applied to spending as shoppers put purchases of big ticket items on hold whilst they waited to see if the Bank of England would take action on interest rates.  Even sales of home accessories and furniture flat-lined, which is surprising given the UK is reportedly in the midst of a housing boom."

Over the last three months, food showed almost no total growth, at 0.1%, while like-for-like sales fell by 2%. Non-food reported total growth of 4.7% in the period with like-for-like sales rising by 3.6%.

While the food sector struggled, clothing retailers fared better as the warmer weather drove demand for summer clothes and shoes. 

BRC director general Helen Dickinson said: "Consumers continue to benefit from competitive pricing, which may be the cause of softer like-for-like sales in June. For retailers, it’s a bit of a mixed picture, with food sales down and non-food sales up but at a slower rate than in June.

"On the other hand, the total value of overall food sales is still in decline but the lower pricing policies we have witnessed are good news for consumers who are set to continue to benefit from keen bargains in their shopping baskets."

Online sales of non-food products in the UK grew 10.6% in June versus a year earlier. The non-food online penetration rate was 17.2% in June, 0.9 percentage point higher than in June 2013.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‚Äėsmall and beautiful‚Äô solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process