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UK heatwave boosts June retail sales, online share hits 5-year high
ONS data showed retail sales volume rose 1.0% month on month in June, beating expectations, while hot weather and World Cup spending helped lift year-on-year sales by 4.2%.
Record heatwave conditions helped lift retail demand in Great Britain, with the Office for National Statistics reporting year-on-year retail sales volume increased 4.2% in June, near double analysts’ expectations of 2.3%. Housing demand for air conditioning and outdoor products also played a role, alongside World Cup-related spending, according to Guardian Business.
The ONS said retail sales volume rose 1.0% month on month in June, surpassing forecasts for a 0.3% decline. After a revised 0.7% monthly fall in April, the publication attributed overall retail sales growth of 0.6% in the three months to the end of June to two months of hot weather.
Non-store retailers, mainly online businesses, saw another strong month, with sales up 4.4% in June. The outlet also said that online sales reached their highest share of retail spending in five years, though the June growth was lower than the 6.1% rise recorded in the previous month.
Clothing and footwear sales climbed 1.9% month on month, the biggest increase since September, while sales at other non-food stores rose 1.8% on the month, driven by computer and telecoms retailers. Department stores declined 1.7% month on month after a 2.5% increase in May, and household goods retailers were down 0.6% month on month, as Guardian Business reported.
The Guardian Business also noted concerns that retailers could still face headwinds, including a higher energy price cap, persistently elevated interest rates, and inflationary pressures linked to renewed tension in the Middle East.