Retail sales volumes in the UK declined by 0.5% in July compared with the previous month, according to the Office for National Statistics (ONS). The fall was driven by a sharp drop in clothing and footwear sales, which slid by 2.7% — the steepest decline since May last year.
July decline follows revised June growth
The July figure reversed the 0.7% growth recorded in June, which statisticians revised down from an earlier estimate of 1%. Economists had predicted a 0.4% decline for July, making the actual fall marginally larger than expected.
Experts attributed the clothing sales slump to retailers moving promotions and discount activity forward into June, which boosted sales that month but led to a subsequent drop-off in July.
Three-month trend shows overall growth
Despite the monthly decline, the ONS reported that retail sales volumes increased by 1.1% over the three months to July compared with the previous three-month period.
ONS chief economist Grant Fitzner said: “Retail sales increased in the latest three months, with all main sectors, apart from motor fuel, seeing growth.”
“Some retailers told us that hot weather and promotions helped sales of outdoor products and items such as fans, with clothing and online sports merchandise also doing well.”
