PwC comments on June 2024 ONS retail sales figures

Commenting on the Office of National Statistics retail sales index for June 2024, Lisa Hooker, Leader of Industry for Consumer Markets, PwC UK, said:

“Following May’s partial recovery, retail sales fell in June across every category of retailer, with the unseasonably cool weather putting a chill on high street activity. Headline sales volumes excluding petrol fell by 1.5% compared with the previous month, and fell by 0.8% compared with last June."

"The biggest volume declines included supermarkets, which sold 3.1% fewer items than last June, and fashion retailers, where volumes fell by 4.5%. In fact, clothing volumes have now fallen every month since last Autumn, which explains some of the heavy discounting and earlier sales that shoppers are now enjoying, as retailers rush to clear seasonal stock."

"Online was about the only winner, increasing sales compared to last June, albeit penetration fell from 27.5% to 27.1% compared with May."

"Despite falling inflation, wage increases, benefit increases and lower national insurance rates, it appears that the cooler, wetter weather over spring and early summer, combined with longer term uncertainty in the period prior to the general election, has discouraged shoppers from both buying seasonal goods and making longer term big ticket purchases."

"While July has also got off to a wet and chilly start, retailers will be hoping that the return of warmer weather, longer term political stability and England’s relative sporting success, encourages consumers to return to the high street, albeit probably too late to save the summer season sales for some retailers."

"With the likelihood of a more favourable economic backdrop to the second half, fingers will be crossed that the run up to Christmas will see a recovery following a disappointing first part of 2024."