- Retail sales down 1.2% in July compared to previous month
- Food sales also down as price pressures remained high
- Online stores boosted as shoppers chose to shop from home
Danni Hewson, head of financial analysis at AJ Bell, comments on the latest retail sales figures:
“The Great British washout dealt a huge blow to retailers as would be shoppers shunned soggy high streets. Unseasonably wet and cold weather meant there was no need for new summer togs as people instead ferreted out winter jackets if they were brave enough to leave the house at all.
“Online retailers enjoyed something of a boost as people chose to do what little shopping they required from the comfort of their homes, but even then cost-of-living pressures were acutely apparent.
“Promotions and offers were prolific as competition for every one of our hard-earned pounds remained fierce.
“And with food inflation still stingingly high food sales were also down as the opportunity for picnics and barbecues vanished in the drizzle.
“July’s retail slump follows three positive months for the sector and there is every indication that consumers do still have cash to spend, they’re just choosing where and when to spend it very carefully.
“With ‘Barbenheimer’ offering something for everyone at the cinema and Mecca Bingo owner Rank updating markets to say they’d enjoyed a big spike in revenues since the showers began, it seems people took the opportunity to splurge on experiences rather than stuff.
“A bit more sunshine and the potential of a World Cup victory is likely to re-frame the numbers.
“Slowing retail sales would normally be seen as a sign of consumer stress, but this feels more like a weather related blip and it’s unlikely the Bank of England will give these numbers anything more than a cursory glance when it comes to next month’s interest rate decision.”
