Clothing welcomes modest growth as retail sales edge up in June

Total retail sales in the UK rose by 3.1 percent year-on-year in June, as soaring temperatures and sports events encouraged shoppers. This was against a decline of 0.2 percent reported in June 2024, according to data from the British Retail Consortium (BRC) and KPMG.

While food sales were up 4.1 percent, non-food sales rose 2.2 percent YoY, contrasting a 1.9 percent drop in the same month of the year prior. Online non-food sales came marginally above in-store sales, increasing 2.3 percent compared to the latter’s 2.2 percent uptick. The online penetration rate, reflecting the proportion of non-food items bought online, remained unchanged at 36.6 percent.

In a statement, Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “Warm weather and the start of the holiday season led to modest monthly growth for clothing sales. But retailers will be hoping that the buying is not yet complete and that the pace picks up further in July and August as suitcases get packed and the sun hopefully keeps shining.”

Looking ahead, Helen Dickinson, chief executive of the BRC, noted that the current “outlook is not all bright and sunny”, as retailers await the government’s decision on business rates reform. “If the government includes shops within its new higher rates threshold, then many retailers will be forced to rethink their investment plans,” Dickinson said.