Retail sales edged up in July as consumers sought to make the most of the warm weather.
The latest figures from the British Retail Consortium (BRC) show total sales rose 0.5% last month, against a growth of 1.5% in July 2023. This is below the 12-month average growth of 1.4%.
Food sales rose 2.6% year on year over the three months to July, against a growth of 8.4% in July 2023 and the 12-month average of 5.3%.
However, non-food sales dropped 2.7% in the three months.
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BRC chief executive Helen Dickinson said: “Retail sales returned to growth, driven by an increase in food purchases. The late arrival of British sunshine led to a better month for summer clothing and health & beauty products as shoppers prepared for days out with friends and holidays away.
“However, as consumers spent on holidays and entertainment, sales of indoor goods, such as furniture and household appliances, were squeezed out. This left non-food once again in negative growth, particularly for in-store sales.
KPMG UK head of consumer for retail and leisure Linda Ellett added: “While summer staples, such as health, beauty, and gardening products have helped to drive retail sales growth both online and in-store in July, the upturn is likely much less than retailers were hoping for at this key time of the year.
“A busy summer of televised sport has played a beneficial role in increasing TV, mobile and tablet sales over the last two months, but there’s little evidence of other big ticket purchases taking place.
“Spending levels continue to be governed by whether households have been able to absorb the likes of mortgage and rent increases, or had to limit their spend elsewhere as a consequence.
“Also, while some sectors are seeing wage growth, others are cutting posts – leaving some consumers mindful that they may need to fall back on savings if they find themselves out of work.”
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