Warm weather and food spend drive UK retail sales growth

UK retail sales returned to growth last month, following a slight dip in June, as increased food purchases and improved weather gave consumer spending a boost.

According to the latest BRC-KPMG retail sales monitor, total retail sales were up 0.5% on last year in July. This was against a solid comparative of +1.5% in July 2023 and followed a 0.2% annual decline in sales in June.

The food market drove last month's performance with food sales rising 2.6% in the three months to July, offsetting a 1.7% three-month decline in non-food retail.

"The late arrival of British sunshine led to a better month for summer clothing and health and beauty products as shoppers prepared for days out with friends and holidays away," said the BRC's chief executive Helen DIckinson. "However, as consumers spent on holidays and entertainment, sales of indoor goods, such as furniture and household appliances, were squeezed out. This left non-food once again in negative growth, particularly for in-store sales."

The report showed that grocery sales were particularly strong in the final two weeks of July, helped by the mini heatwave when the UK enjoyed its hottest day of the year so far.

“An August heatwave and GB's successes at the Olympics are likely to cause a short-term uplift in confidence and therefore more trade-up opportunities as we’ve previously seen at the Euros. This would continue a three-month trend of continued growth for grocery, as spurred on by the weather," said Sarah Bradbury, chief executive of grocery insights firm IGD.