Cooler weather in first half of June dulls consumer spend

UK total retail sales decreased by 0.2% year-on-year in June, with cooler weather in the first half of the month deterring consumer spending.

It comes against a growth of 4.9% in June 2023 when the weather was hot and sunny for most of the month, according to the latest data from the BRC-KPMG Retail Sales Monitor.

Non-food sales decreased 2.9% year-on-year over the three months to June 2024, against a growth of 0.3% in June 2023.

In-store non-food sales decreased 3.7% over the three months to June 2024, in comparison to an uplift of 2% in June 2023, while online non-food sales decreased 0.7% year-on-year in June, against an average decline of 1% in June 2023.

Helen Dickinson, CEO of the British Retail Consortium, said: "Retail sales performed poorly in June as the cooler weather during the first half of the month dulled consumer spending.

"Retailers remain hopeful that as the summer social season gets into full swing and the weather improves, sales will follow suit.

"The retail industry is vital to the nation’s economy as an important source of employment and investment. The industry shapes local communities and provides three million jobs across the country. Through its scale and reach, retail can make a huge contribution to Labour’s policy goals, and the industry stands ready to work with the new Government to find ways to make this happen."

Linda Ellett, Head of Consumer, Retail & Leisure at KPMG UK, added: "Summer may finally have arrived, but it did little to persuade consumers to hit the shops, with retail sales flatlining at 0.2% in June.

"Despite pressure on household finances easing, with petrol and energy costs and shop price inflation all continuing to fall, consumers remain incredibly reluctant to take the brakes off their spending.

"The stimulus of good weather, Wimbledon and Euro 24, which was hoped would drive consumer spending, has so far failed to materialise and financial concerns remain with many households."