Stronger sales when the sun shines

Responding to the latest ONS Retail Sales Index figures, which showed sales up 2.2% by value, and up 1.4% by volume, Kris Hamer, director of insight at the British Retail Consortium, said: “Following the gloomy start to summer spending, retailers welcomed the warmer July weather which gave sales growth a boost, particularly in areas such as cosmetics, clothing, footwear, and books as consumers prepared for their summer holidays. Computing also sold well as people upgraded their home office tech purchases. Meanwhile, homeware and furniture performed badly, as people concentrated their spending on summer experiences. The high cost of living is still bearing down on consumers, but with interest rates finally easing, retailers are hopeful that this will buoy consumers’ confidence, and with it greater spending, particularly as we head into August.”

“Retailers are working closely with government to maximise the industry’s contribution to economic growth. But, with headline inflation showing signs of rising further, retailers face the prospect of another large rise in business rates next year. As retail businesses plan their investment strategies, many will be looking ahead to the Autumn Budget, keen to end 14 years of Conservative business rates rises which has seen the tax rate rise 30%, harming the viability of many retail stores across the country.”