UK retail sales dip in June 2024, clothing takes a hit

In June 2024, total UK retail sales experienced a minor decline of 0.2 per cent, a departure from the growth observed in June of the previous year, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor. However, it is important to consider that June of last year was the hottest on record for the UK, and historically, warmer weather tends to boost sales. Categories such as clothing and footwear saw declines, contrasting with the spending levels during the previous June's heatwave.

While June 2024 shows a slight year-on-year (YoY) decline, it is not the lowest figure recorded this year. April saw a more significant drop in sales. Despite this, the retail sector remains cautious, keeping a close watch on economic indicators and consumer sentiment. With the recent change in government, the industry is hopeful for new policies and measures that will stimulate economic growth, enhance consumer confidence, and drive spending, as per the retail monitor.

Non-food sales in June 2024 decreased YoY over the three months leading up to June, and were lower compared to the same period last year. The retail landscape in June reflected varied consumer behaviours influenced by seasonal activities and evolving preferences amidst changing economic conditions.

Online sales in June also declined compared to the previous year, showing a reduction from May's YoY growth but marking the smallest decline since August 2021. Categories such as clothing and footwear saw decreases, contrasting with spending levels from the same month last year.

“Retail sales performed poorly in June as the cooler weather during the first half of the month dulled consumer spending. The sales of weather sensitive categories such as clothing and footwear were hit particularly hard, especially compared to the surge in spending during last June’s heatwave. Retailers remain hopeful that as the summer social season gets into full swing and the weather improves, sales will follow suit,” said Helen Dickinson OBE, Chief Executive, BRC.

“Retailers, who are running to stand still at the moment, having exhausted all of the levers they have at their disposal to cut costs and drive sales via promotions, will be looking to the new government to boost the economy and confidence. The overall economic conditions may slowly be improving, but the health of the sector remains fragile, and action is needed now to help support this vital economic contributor—particularly around neglected areas such as business rate reform,” said Linda Ellett, UK head of consumer, retail, and leisure, KPMG.

Fibre2Fashion News Desk (DP)