Retail basks in JuneҴýs heatwave
The show volumes were up 0.9% in June, driven by department stores (up 2.1%), clothing and footwear (up 1.0%), and food stores (up 0.7%).
Jacqui Baker, Head of Retail at Ҵý and chair of ICAEWҴýs Retail Group, comments: ҴýRetail was one of the winners from JuneҴýs heatwave. The hot weather helped to lift the mood among consumers, while early sales tempted shoppers to the high street. Consumers purchased new outfits ahead of major sporting events in July including Wimbledon and summer headline concerts led by Beyonce and Oasis.
ҴýGarden parties were in full swing as households stocked up on barbeque food, boosting food sales. The launch of the Nintendo Switch 2 also gave us an indicator for an uplift in electrical goods.
ҴýWhile the June figures are welcome news and consumer confidence ticked up last month, nervousness among consumers persists, and the unexpected rise in inflation wonҴýt have helped. The higher price of essentials such as food and fuel will only add to the reluctance among consumers to spend as their discretionary income shrinks.
ҴýConcerns remain in the sector, as retailers increasingly run out of headroom to mitigate rising costs. Many will be hoping the government steps in to provide meaningful reductions in business rates, as well as raising the threshold at which employersҴý National Insurance becomes payable. ItҴýs also hoped that the reintroduction of tax-free shopping is brought back on the table, so the sector doesnҴýt miss out further on valuable retail spend.Ҵý