Jubilant June for retail sales
This The Retail Sales Statistics released this morning have shown a positive boost mainly thanks to fine weather.
The key findings from the Retail Statistics showed:
· In the 3 months to June 2017, the quantity bought in the retail industry is estimated to have increased by 1.5%, with increases seen across all store types
· The growth for Quarter 2 (Apr to June) 2017 follows a decline of 1.4% in Quarter 1 (Jan to Mar) 2017, meaning we are broadly at the same level as at the start of 2017
· Compared with May 2017, the quantity bought increased by 0.6%, with non-food stores providing the main contribution
· Feedback from retailers suggests that warmer weather in addition to the introduction of summer clothing helped boost clothing sales
· Average store prices (including petrol stations) increased by 2.7% on the year following a rise of 3.2% in May 2017; the fall is a consequence of slowing fuel prices
· Online sales (excluding automotive fuel) increased year-on-year by 15.9% and by 1.8% on the month, accounting for approximately 16.2% of all retail spending.
Phil Mullis, Partner and Head of Retail and Wholesale at top-20 UK accountancy firm, Wilkins Kennedy, said: “Inflation pushed prices up but consumers have did benefit from a fall in fuel prices. Spend was up 0.4% compared to May, 1.6% on the last three months and 5% year on year, so things are looking up.
“The good weather we experienced in June helped to get people into stores to kit out their summer wardrobes – and retailers who were able to adopt an effective forecasting strategy to push full price sales were particularly prosperous.
“Will the good summer vibes continue? We hope so, but inflation is due to hit 3% by the end of the year. This is bound to have an effect on consumer spending as it hits our pockets. Retailers will need to be fluid and adopt their sales strategies if they want to weather a potential future storm.”