Retail sales volumes are estimated to have risen by 0.7% in June 2023 with increases across all the main sectors (food, non-food and non-store retailing) except automotive fuel, following a rise of 0.1% in May 2023 (revised from an increase of 0.3%), the latest data from the Office for National Statistics shows.
Looking at the quarterly picture, retail sales volumes rose by 0.4% in the three months to June 2023 compared with the three months to March 2023.
Non-food stores sales volumes rose by 1.0% in June 2023, following a fall of 0.5% in May 2023; department stores and furniture retailers reported that summer sales and increased footfall helped boost volumes.
Food stores sales volumes bounced back with 0.7% growth in June 2023, following a fall of 0.4% in May 2023, with feedback from some supermarkets that the good weather and promotions helped sales.
Non-store retailing sales volumes rose by 0.2% in June 2023, following a rise of 2.4% in May 2023.
Automotive fuel stores sales volumes fell by 0.3% in June 2023, following a rise of 1.7% in May 2023.
Kelly Miely, retail partner at Deloitte, said: “The hottest June on record painted a sunny picture for retailers as sales lifted for the third consecutive month. Spending on clothing and furniture rose as consumers devoted a larger share of their wallet towards discretionary items, as we’ve also seen in our latest Consumer Tracker.
“Even as inflation begins to fall, the changing economic landscape is not immediately influencing consumer behaviours. Many consumers continue to source cheaper products through discounting and value-ranges, as well as opting to shop at budget stores. Mid-market brands and retailers will therefore need to show the value and quality of their product ranges to encourage spending.”
Kelly Askew, Accenture’s retail strategy & consulting lead in the UK and Ireland, said: “Soaring temperatures and the long weekend in June sent Brits flocking to the shops, and retailers will undoubtedly be pleased to see another lift in sales, as shoppers made the most of the warmer weather.
“Businesses will be keeping a close eye on consumer confidence over the coming months. Despite inflation coming down, the cost of living remains high, so brands can’t be complacent in protecting their share of the market.
“With affordability top of mind, retailers need to position themselves to customers as the top choice for great value and a great experience, both in-store and online.”
