Modest sales growth in July
Responding to the latest ONS Retail Sales Index figures, Harvir Dhillon, lead economist at the British Retail Consortium, said: “Sales growth among larger retailers was modest in July, as sustained high temperatures since May meant many consumers had brought forward much of their summer spending earlier in the season. Footwear and household goods struggled, while clothing provided a bright spot as shoppers continued to seek out affordable summer essentials to cope with the ongoing heat. Alcohol sales also saw a strong boost as people came together for the final games of the World Cup.”
“The months ahead look challenging for households, with rising bills set to put further pressure on already stretched budgets. For retailers, operating costs remain high, leaving limited room to absorb further increases without putting investment, jobs and prices under pressure. If the government is serious about delivering growth while keeping the cost of living under control, it must reduce the cost of doing business. This means tackling the growing burden of business rates, packaging taxes and employment costs.