UK retail sales bounce back as Brits enjoyed warmest June on record
Sales for UK retailers rose last month as Britons enjoyed the warmest June on record, which helped drive sales of food and drink, according to official figures.
The Office for National Statistics (ONS) said overall retail sales volume rose by 0.9 per cent in June, following a 2.8 per cent fall in May, as consumers returned to the high street.
Good weather drives food and drink demand
According to figures the warm weather had “a positive effect” on food stores sales volume, which recorded a 0.7 per cent increase, following a 5.4 per cent decrease in May. The improved sales volume was mainly down to improved sales volume in supermarkets, with retailers commenting on an increase in sales of drinks.
Automotive fuel volumes also recorded a 2.8 per cent rise in June due to the impact of good weather, the largest monthly rise since May 2024, while non-store retailer’s sales volumes, which mainly includes online retailers, rose by 1.7 per cent, accredited to promotions as well hot weather.
However, non-food store volumes rose by just 0.2 per cent, which commentators attributed to lower footfall. While department stores and clothing retailers rose on the month, again relying on promotions and the heat, this was offset by falls in household goods.
Consumers remain nervous
Yet, some within the sector warned that increased sales due to warm weather is not an overall sign of increased “consumer confidence”, with non-retail spending likely to “remain patchy” until meaningful improvement in income and confidence is provided to shoppers.
Nicholas Found, Head of Commercial Content at Retail Economics, said, “While headline sales figures for June suggest modest momentum on the surface, much of the uplift was seasonal and driven by heavy promotional activity around events, sport and warmer weather.”
“Beyond that, demand remains selective. Food inflation is hitting households harder, leading to tighter budgets and renewed uncertainty around the cost of living.”
“Retailers are walking a fine line. They are working to attract demand without sacrificing margins, all while contending with new structural cost pressures following the Budget.”
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group said, “While the June figures are welcome news and consumer confidence ticked up last month, nervousness among consumers persists, and the unexpected rise in inflation won’t 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.”
Online sales bounce back
Despite a drop in footfall hitting the sales of non-food stores, overall online sales rose across most sectors, following two consecutive falls. Sales saw a 2.3 per cent increase in June, with a 4.5 per cent rise compared to June 2024.
reported that England had its warmest June on record, and the second warmest for the UK as a whole.