The Office for National Statistics (ONS) has reported retail sales figures in Britain for June fell by 1.2% following a rise of 2.9% in May.
Non-food store sales volumes fell by 2.1% in June, and food sales fell by 1.1% and volumes fell across all sectors excluding fuel.
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club said, “Retail sales volumes came in weaker than expected in June, following a stronger-than-expected May. This continues the volatility in monthly sales patterns seen since the turn of the year, with strange weather and economic caution playing a role.
“Consumers weren’t exactly splashing the cash in June – sales in every category, excluding fuel, declined. But we should remember that May sales were especially strong. Sales volumes over the last 3 and 6 months are broadly flat and suggest the consumer is in reasonable health, but not exactly feeling flush.
“The volatility in monthly retail sales is making it even more difficult than usual to read the economic tea leaves. June was not a great month for the sector.
“But inflation is moderating, wages are rising and the election is now done and dusted, providing much needed certainty. This means sales could easily bounce back over summer, especially if the weather Gods start being a little more kind.”
“Unfortunately June has been a washout for retail sales, with retailers yet to sustain two consecutive months of sales growth this year, with another slowdown after an uptick in May,” said Erin Brookes, an expert at consulting firm Alvarez & Marsal.
“The poor weather in June saw disappointing sales of summer goods including across food and clothing. This comes despite significant discounting and deflation in fashion retail, with volumes remaining stagnant.
“Looking ahead, England reaching the final of the Euros, and the start of the school holiday, may have driven sales higher in July, but retailers will be concerned about structural volume decline against a backdrop of intensifying competition.
“With tourism to potentially offer some sales uplift over the summer, retailers must look ahead and plan activities for the back half of the calendar year to ensure performance.”
