Commenting on the Office of National Statistics retail sales index for June 2025

Commenting on the Office of National Statistics retail sales index for June 2025, Jacqueline Windsor, Head of Retail at PwC UK, said:

“Headline sales excluding petrol grew by 0.6% in June compared with May in volume terms, which translates into 0.9% more money in the tills of the nation’s retailers. Compared with last year, sales volumes were up by 1.8%, with pounds in the till up by 3.5%, helped by inflation.

“There was a rebound in sales at supermarkets and fashion retailers, as shoppers took advantage of June's heatwaves to entertain at home and refresh their wardrobes. However, England’s warmest June on record also discouraged shoppers from visiting high streets, with footfall declining and online retail sales penetration increasing to 27.8% from 27.4% the previous month.

“While June's monthly sales growth was an improvement compared to May’s adjusted disappointing 2.9% volume decline, it was still below April’s 1.8% growth adjusted for the later timing of Easter, confirming that some consumer spending was pulled forward to earlier in the Spring.

“Indeed, quarter-on-quarter growth was essentially flat between April and June, compared with a 1.6% rise in the first three months of 2025, which had been the best quarterly improvement in retail sales volume growth since the end of the pandemic.

“With sales growth now flattening, it looks like the uptick in inflation in recent months is starting to eat into consumers’ spending power. While headline inflation eased slightly in June, grocery prices in particular have continued to increase, as retailers pass on both higher input and higher operating costs, the latter following April’s employee cost and business rate rises. 

“Not surprisingly, despite an improvement in consumer sentiment compared with earlier in the year, our most recent research saw concerns over inflation rising and a stalling recovery in discretionary spending categories. However, there’s still a long summer to go before the critical run-up to Christmas, so retailers will be hoping that shoppers return to the spending growth they exhibited earlier in 2025.”

-Ends-

Notes to Editors:  
Based on the 7am edition of ONS data released on 25th July here: https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/june2025