Top story
UK retail sales volumes fell back in June, according to official figures, to take industry sales into decline for the second quarter.
The Office of National Statistics found retail sales volumes fell by 1.2% in June 2024, following a rise of 2.9% in May 2024.
Volumes fell by 0.2% over the year to June 2024, and were 1.3% below their pre-Covid pandemic level in February 2020.
Sales volumes fell across most sectors, with department stores and clothing retailers broadly returning to their first quarter (Jan to Mar) 2024 levels.
Looking at the quarter, sales volumes fell by 0.1% the second quarter when compared with first quarter of 2024, and fell by 0.2% year on year.
Non-food store sales volumes (the total of department, clothing, household, and other non-food stores) fell by 2.1% in June 2024, following a rise of 3.3% in May 2024.
All sub-sectors fell over the month, with strong downward contributions from department stores, clothing and footwear retailers, and furniture stores.
Retailers suggested election uncertainty, poor weather, and low footfall affected sales.
Food stores fell by 1.1% in June 2024, and by 1.3% the second quarter compared to the first.
This was mainly due to supermarkets, with retailer commentary suggesting that both poor weather and economic conditions had an effect, as consumers showed caution with their spending.
The amount spent online also fell by 2.7% during June 2024, but rose by 2.3% compared with June 2023.
Morning update
Consumer confidence was only marginally up in July as the general election had a limited impact on consumer confidence, according to GfK’s monthly consumer confidence figures.
The overall index was up one point compared to June at –13.
Consumer perception of their personal finances over the year improved two points, to –8.
However, the score for expectations about their own finances going forward eased one point to 3.
People’s sentiment on the general economic condition of the country over both over the last 12 months and looking to the year ahead were unchanged, at –32 and –11, respectively.
Joe Staton, client strategy director at GfK, said: “The seven-point uptick in the major purchase index is potentially good news for retailers that could translate into improved footfall in the months to come.
“But the consumer view on the UK’s wider economy has paused. Two important events during the survey period – the general election result and Euro 2024 final – could have boosted the national mood, but appear to have had limited positive impact.
“July’s poll suggests a note of caution as people wait to see exactly how the UK’s new government will affect the wider economy and their personal finances.”
On the markets this morning, the FTSE 100 has fallen back 0.6% to 8,160.1pts.
Early risers include Nichols, up 3.9% to 1,065p and AG Barr, up 0.9% to 618.3p.
Fallers include PZ Cussons, down 2.6% to 104.6p, Just Eat Takeaway.com, down 2.3% to 937p and Ocado, down 2% to 384.7p.
No comments yet