UK retail sales suffer ‘worst June on record’ as summer fails to shine

Retail sales continued their downfall with June marked as the “worst on record” for UK retailers due to bad weather and rising Brexit uncertainty.

On a total basis, retail sales dropped 1.3% in the four weeks to June 29, according to figures from the BRC-KPMG retail sales monitor.

In the same period last year, sales had risen 2.3% as the warm weather coupled with England’s success in the football World Cup increased consumer spending.

Like-for-like sales declined 1.6% from June 2018, when they had risen 1.1%.

“June sales could not compete with last year’s scorching weather and World Cup, leading to the worst June on record,” BRC CEO Helen Dickinson said.

“Sales of TVs, garden furniture and BBQs were all down, with fewer impulse purchases being made. Overall, the picture is bleak; rising real wages have failed to translate into higher spending as ongoing Brexit uncertainty led consumers to put off non-essential purchases.”

Over the three months to June, food sales rose 2.4% on a total basis, with like-for-like food sales up 1.5%.

Non-food retail sales however were down 2.1% in the same three-month period, with like-for-like reduced by 2% marking the worst quarterly decline since 2009.

IGD Food & drink CEO Susan Barrat said: “A late start to the summer weather in June compared unfavourably with consistently drier and warmer conditions in 2018, so while year-on-year growth in food and grocery sales last month was small, it is still encouraging.

“If the recent pick up in temperatures is sustained, there’s hope for stronger figures in July.”