Sunshine adds some extra sizzle to retail sales in June
HOT, sunny weather helped retail sales rise 1.4 per cent on a like-for-like basis in June compared to the same period a year ago, according to figures published today by the British Retail Consortium (BRC).
This is much higher than the 0.4 per cent fall in like-for-like sales expected by analysts, raising hopes of rising consumer spending despite tight credit conditions. The strength of consumer spending is critical to the UK’s recovery prospects as consumption is about 60 per cent of GDP.
On a like-for-like basis – which strips out new store openings – food sales rose 5.4 per cent in the three months to June compared to the second quarter of 2008. Non-food sales fell by 0.7 per cent, but the heatwave, together with clearance sales, boosted sales of clothing, footwear and outdoor leisure goods.
Stephen Robertson, director general of the BRC, said: “The sun knocked sales of big-ticket items, such as furniture and homewares, as people’s attention focused on the outdoors. Given the uncertainty about jobs, customers are still nervous about spending on more expensive, non-essentials.”
More shoppers are now choosing to use the internet or the phone to order non-food items, with sales 16.8 per cent higher than a year ago.