Hot weather has sparked a rise in sales of summer clothing in a much-needed boost to the retail sector, which otherwise suffered from the effects of the heat. Demand for cool clothes and garden accessories cheered up an otherwise glum July for retailers, according to new figures, with shoppers generally choosing to avoid the heat of the high street.
Retail Sales Growth Slows
Total retail sales across the UK were up 1.3% year on year last month, below the 12-month average of 1.8%, according to data from the British Retail Consortium and KPMG. There was a boost delivered by the England team’s progress to the semi-finals of the World Cup, which helped drive a 3.8% increase in food sales - above the year average of 3.4%.
But non-food sales were down - by 0.7% compared to last July - so clothing helped save the day. Affordable summer essentials proved popular buys, along with 'smaller indulgences' such as beauty products and fashion jewellery. Bigger buys of furniture and computer equipment appear to be delayed.
Retailers Face Challenging Conditions
British Retail Consortium chief executive Helen Dickinson said: “Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year. Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs.”
Linda Ellett, UK head of consumer, retail and leisure markets at KPMG, says the sales upturn in clothes, shoes and accessories has continued into August, adding that prolonged warm weather has also helped home entertaining and garden-related purchases after the World Cup food and drink sales spike of July.
Spending Patterns Shift
Separate figures from Barclays have shown that card-spending is up due to England’s World Cup run; the July heatwave and recovering consumer confidence. Pubs also saw a spending boost during the football. Elsewhere, the leisure industry saw cinemas enjoy a 2.6% boost following the release of Toy Story 5 and The Odyssey.
Travel spending had a dip for the fifth month, with airline spending 6% down but hotels, resorts and accommodation growing 2.6%, suggesting that holidaymakers are still prioritising staycations over trips abroad.
