The summer time heatwave prompted buyers to spend extra on summer time garments, picnic meals and air con in July, based on the newest figures.
The British Retail Consortium stated the worth of complete gross sales was 2.3% increased final month than it was in July 2021 – excellent news for retailers after falls in every of the earlier three months.
Like-for-like gross sales had been up 1.6% after 4 months of falls.
But the figures usually are not adjusted for inflation and the consortium stated they represented a fall in quantity phrases.
Inflation hit a 40-year excessive of 9.4% in June, and July’s figures will probably be revealed later this month.
Helen Dickinson, chief govt of the BRC, stated that, with inflation over 9%, many retailers had been nonetheless contending with falling gross sales volumes throughout what “remains an incredibly difficult trading period”.
“Consumer confidence remains weak, and the rise in interest rates coupled with talk of recession will do little to improve the situation,” she added.
Overall gross sales of non-food gadgets, similar to homeware, declined by 2% within the newest quarter.
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Sales of non-food merchandise from shops had been up 2% within the three-month interval, however on-line gross sales had been down 3.9%, reversing the development seen in the course of the COVID-19 lockdowns.
Paul Martin, UK head of retail at KPMG, stated: “The summer could be the lull before the storm with conditions set to get tougher as consumers arrive back from summer breaks to holiday credit card bills, another energy price hike and rising interest rates.
“With stronger cost-of-living headwinds on the horizon, shoppers should prioritise necessities, and discretionary product spending will come below strain.”
Consumer spending was up 7.7% in July compared to a year earlier, figures from Barclaycard showed, boosted by sales of clothing, beauty products and staycations.
But it also included a 44% leap in spending on utilities and a 30% leap in fuel.
Households are cutting back on overseas travel and dining out but Barclaycard said that its survey showed confidence in household finances.
Some 66% of survey respondents said they felt confident about their household finances, compared to 59% in June.
Jose Carvalho, head of consumer products at Barclaycard, said: “This exhibits that, confronted with tough circumstances, many are discovering methods to funds and handle their funds efficiently, to deal with ongoing inflationary pressures.”
Source: information.sky.com”