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Retail sales volumes bounced back to growth in July, according to official statistics, as warmer weather and sporting events boosted activity.
According to date from the Office of National Statistics, retail sales volumes were up by 0.5% in July, following a fall of 0.9% in June (revised from a more significant drop of 1.2% in the previous month’s data)
The ONS said that department stores and sports equipment stores in particular were buoyed by summer discounts and sporting events.
In total, bon-food stores sales volumes, the total of department, clothing, household, and other non-food stores, rose by 1.4% in July 2024, following a fall of 1.9% in June
Food stores were flat during the period.
Non-store retail sales volumes rose by 0.7%, mainly because of a rebound from retailers other than mail order (such as stalls, markets, vending machines and door-to-door sales).
Meanwhile, automotive fuel sales volumes fell by 1.9% during July as the average price of petrol fell by 1.4 pence per litre between June and July 2024
More broadly, sales volumes rose by 1.1% in the three months to July 2024, when compared with the three months to April 2024.
Tom Youldon, partner at McKinsey & Company, commenting on the figures, said: “The Euros, sunny weather and a promotional bonanza combined to deliver a recovery in retail sales.
“Today’s increase mirrored the 0.6% Q2 increase in UK GDP growth, as well as the 1.0% increase in US retail sales announced yesterday which buoyed markets.
“With sales volumes increasing across most categories, many retailers will be cautiously optimistic. Fragile consumer confidence may be lifted as inflation continues to hover close to the 2% mark and the first cut to interest rates since 2020 starts to feed through to household budgets.”
Matt Jeffers, retail strategy and consulting MD for Accenture in the UK & Ireland added: “A hat-trick of the Euros, Wimbledon and Olympics has brought a moderate boost to retail sales in July, helped along by the warmer weather. With holiday season well underway, retailers benefited from a strong performance in department stores and sports equipment.
“Retailers can feel optimistic heading into August, as the ongoing summer holiday period and back-to-school shopping could continue to drive sales. However, the slow start to Spring-Summer will mean many retailers are now juggling inventory and feeling pressure to start clearance sales. They may inevitably have to take a hit to margins in certain areas to maintain this positive momentum into next month.”
Morning update
On the markets this morning the FTSE 100 has fallen back 0.2% to 8,330.2pts.
Risers this morning include Ocado, up 1.5% to 382.8p, FeverTree, up 1% to 907.5p and PZ Cussons, up 1% to 104.8p.
Fallers include Naked Wines, down 1.4% to 49.1p, Just Eat Takeaway.com, down 1.4% to 1,082.6p and SSP Group, down 1.2% to 171.5p.
Yesterday in the City
The FTSE 100 continued its recovery from the mini-global stock crash of early August, by rebounding another 0.8% yesterday to 8,347.3pts on stronger than expected UK GDP data.
The market has recovered almost all the lost ground since global stock markets fell back in the first week of August.
Grocery risers yesterday included SSP Group, up 4.5% to 173.5p, C&C Group, up 3.2% to 156.4p, Coca-Cola Europacific Partners, up 2.9% to 70.00, McBride, up 2.8% to 128.5p, Greencore, up 2.3% to 179p and THG, up 2.2% to 63.1p.
Fallers included Deliveroo, down 2.8% to 148.7p, Glanbia, down 1.9% to €16.95, Kerry Group, down 0.7% to 85.8p, Naked Wines, down 0.6% to 49.8p and Just Eat Takeaway.com, down 0.5% to 1,098p.
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