Britain’s Retail Sales Take an Unexpected Dive in June
According to the Office for National Statistics (ONS), retail sales in the UK slipped by 1.2% in June after enjoying a solid 2.9% jump in May. That’s a bit like dropping a pizza on your foot after you just scooped up a whole pizza box.
Sector‑by‑Sector Breakdown
- Food sales fell 1.1%.
- Non‑food store volumes declined 2.1%.
- All other categories, except fuel, saw a dip.
Industry Voices on the Numbers
Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, says it’s all about the weather ghosting our wallets:
“Retail sales in June came in weaker than expected after a stronger-than‑anticipated May. The volatility is a cocktail of strange weather and cautious spending. Consumers weren’t exactly splashing cash; every category, apart from fuel, took a hit.”
“Sales volumes over the last 3 and 6 months are flat, indicating people are in reasonable health but not exactly flush with cash.”
“The volatility makes reading economic tea leaves harder than a cat in a new room.”
“But inflation is moderating, wages are rising, and the election is over. This should give sales room to bounce back over the summer, especially if the weather gods decide to be kind.”
Erin Brookes of Alvarez & Marsal echoes the sentiment:
“June has been a washout. Retailers haven’t managed two consecutive months of growth yet.”
“Poor weather dragged down summer goods across food and clothing.”
“Looking ahead, England reaching the Euros finals and school holidays could lift July sales. Still, retailers worry about a structural volume decline amid fierce competition.”
What Does This Mean Going Forward?
The data suggests the summer months could yet bring a rebound, with warmer days encouraging shopping sprees, especially if the government’s recent policy wins keep the consumer confidence afloat. Retailers are being advised to plan for the back half of the year, taking advantage of tourism surges and school holidays while keeping an eye on competitive pressures.
Stay tuned for updates – because, in this rollercoaster of retail, the finish line might just have donuts waiting.
