Home » UK Business & Employment News • UK Business News » Retail sales rebound in Britain with more spending on food

Retail sales rebound in Britain with more spending on food

By Nithya Bose in UK Business & Employment News, posted July 22, 2023

Despite ongoing budget constraints, retail sales in Great Britain saw an unexpected surge in June, with households spending more on food and furniture.

Officials' figures revealed a 0.7 percent month-on-month rise in the number of goods purchased, surpassing analysts' average forecasts of a 0.2 percent bump in sales volumes.

Most retailers, except petrol and diesel sellers, reported an uptick in purchases.

This rise came after a meager 0.1 percent monthly increase in retail sales in May, a figure later revised down from the initial estimates of 0.3 percent.

The country's supermarkets played a significant role in consumer spending, as food sales benefited from discounts and rising temperatures.

Food stores, which experienced a 0.4 percent drop in May, rebounded with a 0.7 percent increase in sales in June, according to the Office for National Statistics (ONS).

The hotter weather drove more people to hit the high street, increasing sales at department stores and furniture sectors.

Additionally, shoppers turned to secondhand goods, including items from auction houses, and boosted spending at art galleries, as per the ONS survey.

However, clothing stores faced a decline, with volumes falling by 0.4 percent month-on-month, reaching a level 1.5 percent below pre-Covid levels in February 2020.

Need Career Advice? Get employment skills advice at all levels of your career

Overall, non-food retailers experienced a 1 percent rise in sales volumes last month, marking an improvement compared to the 0.5 percent rise in May.

The ONS chief economist, Grant Fitzner, said: “Retail sales grew strongly, with food sales bouncing back from the effects of the extra bank holiday, partly helped by good weather, and department stores and furniture shops also having a strong month.

“However, these were partially offset by falls in fuel, garden centres and clothes shops. Growth still fell on an annual basis, but at its slowest rate since the beginning of the Ukraine war.”

Follow us on YouTube, Twitter, LinkedIn, and Facebook.