Cold weather in June 2024 hits UK retail spending: Report

The cold weather in early June 2024, a stark contrast to the sunshine and warm weather of June 2023, resulted in a 2.6 per cent decline in UK retail spending, marking the most significant year-on-year (YoY) drop since June 2022 (3.8 per cent), according to the Barclays Consumer Spend report. High-street cutbacks led to a 5.1 per cent drop in in-store spending (excluding groceries), while clothing sales saw a notable 7.7 per cent YoY decline.

Two in five Brits (39 per cent) reported spending less than usual on summer products this year due to the weather, with clothes being the most common cutback at 55 per cent.

Consumer card spending decreased by 0.6 per cent YoY in June, the first decline since February 2021 and significantly lower than the latest CPIH inflation rate of 2.8 per cent, as the colder weather early in the month reduced spending at clothing stores. Supermarket spending also recorded its first decline (2.6 per cent) in two years, with over half (52 per cent) of budget-conscious shoppers seeking out loyalty scheme discounts and supermarket deals, as per the report.

Despite the overall drop in spending, consumer confidence showed signs of recovery compared to the previous month. Brits are maintaining a steady approach to managing their budgets, with 73 per cent feeling optimistic about their ability to live within their means and 56 per cent willing to spend more on non-essential items. Confidence in job security increased by four percentage points to 49 per cent, while concerns about inflation fell by one percentage point to 85 per cent.

“Once again, our data demonstrates the undeniable impact that unseasonable weather can have on consumer spending. The sluggish demand at the start of June even caused some fashion brands to adjust their sales schedules, although I was pleased to see that the situation has since improved with the arrival of sunnier days,” said Karen Johnson, head of retail at Barclays.

Fibre2Fashion News Desk (DP)