Retail sales volumes (quantity bought) are estimated to have risen by 0.5% in July 2024, following a fall of 0.9% in June 2024 (revised up from a 1.2% fall in our previous publication), the latest figures from the Office for National Statistics reveal.
Department stores and sports equipment stores reported a boost following summer discounts and sporting events.
More broadly, sales volumes rose by 1.1% in the three months to July 2024, when compared with the three months to April 2024.
Deann Evans, managing director, EMEA, at Shopify, commented: “An air of optimism is hitting retailers after official sales figures enjoyed a bump in July, suggesting that retail is recovering after a slow start to the year and a delayed summer.
“Although retail sales haven’t come roaring back as the industry hoped, retailers should be confident of a strong end to summer trading now that warmer weather has finally arrived, as rain and lower temperatures dampened spending in June.
“With the Olympics gripping the nation after Great Britain’s strong performance, sports equipment should continue to perform well, as they did in July. Shopify data shows July sales increases for archery products (+52%) and squash racquets (+49%). This may be part of a broader need to entertain children from parents, with Shopify also seeing increases in stencils & die cuts (+110%), drawing & painting kits (+77%) and art & craft kits (+75%).
“Taylor Swift’s Eras Tour returning to Wembley will be a key retail moment in August. Other than boosts for merchandise and food & drink spending, Shopify merchant, Little Lies, saw a 17,000% increase in sales versus the same day in 2023, due to Taylor Swift wearing a dress from their brand, showing her impact on commerce is very real.”
Matt Jeffers, retail strategy and consulting managing director for Accenture in the UK & Ireland, said: “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.”
Sachin Jangam, global practice leader at Infosys Consulting, consumer goods, retail and logistics, added: “Warmer weather and the summer of sport in full swing gave UK retail sales a much-needed boost in July. England’s success in the Euros helped to increase consumer spend, with an uptick in sales across department stores and sports equipment stores.
“Yet whether higher spend continues beyond the summer months is uncertain, especially as inflation creeps back up. With discounting helping to drive sales last month, retailers must stay focused on providing real value to customers. For grocery, but also across the retail sector more generally, subscription-based offerings offer a real opportunity to drive further market share, allowing digitally minded consumers to receive monthly products and the latest deals seamlessly. AI-driven assortment changes in line with consumer preference will be another big theme retailers need to double down on.”
