Breaking
Bigger than expected drop in retail sales after July’s wet weather
The highest proportion of online shopping took place in July since the COVID-19 pandemic.
Sarah Taaffe-Maguire
Business reporter @taaffems
Friday 18 August 2023 08:11, UK
Listen to this article
0:00 / 2:18
1X
BeyondWords
Audio created using AI assistance
People shelter from the rain beneath umbrellas in Southwark, south London. Picture date: Monday July 24, 2023. PA Photo. Photo credit should read: Jordan Pettitt/PA Wire
Why you can trust Sky News
Retail sales fell for only the second time this year as wet weather led to a surprise 1.2% drop, official figures show.
It’s a steep fall from growth of 0.6% in June, according to data from the Office for National Statistics (ONS).
A contraction of 0.5% had been forecast.
Growth in how much people were buying was recorded in all months this year except for March, which the Met Office said was the wettest in 40 years.
July similarly had high rainfall. Parts of the North West – including Greater Manchester and Merseyside – had their wettest-ever July.
Lancashire was the wettest, recording 234.6mm of rainfall last month. Footfall fell as a a result of the weather, the ONS said.
As a result people were drawn to online sales which grew to the highest proportion of all retail sales since the pandemic month of February 2022. Last month 27.4% of retail sales took place online, up from 26% in June.
MORE ON RETAIL
A shopper puts fruit in her basket in a supermarket in London, Wednesday, Aug. 17, 2022. The UK inflation rate has hit 10.1% in the year to July, new figures from the Office for National Statistics have shown. The figure is up from 9.4% in June and is at its highest level in more than 40 years. (AP Photo/Frank Augstein)
Grocery price inflation falls for fifth month in a row, retail data suggests
A branch of the discount retail homeware store Wilko is seen in London, Britain, August 3, 2023. REUTERS/Toby Melville
Wilko administrator sets bidders deadline for buying ailing chain
A branch of the discount retail homeware store Wilko is seen in London, Britain, August 3, 2023. REUTERS/Toby Melville
Wilko’s disappearance would leave an enormous hole on the high street
Related Topics:
Retail
UK Economy
Online promotions were also credited with the increased proportions. Amazon reported highest ever sales of its prime day deals event.
The volume of retail sales also rose overall by 2.8%, which online retailers also attributed to promotions.
People even bought less food last month. Food stores sales volumes fell by 2.6%.
Supermarkets reported the rain and rising prices reduced clothing and food sales.
Non-food stores also experienced a fall, of 1.7%, in with categories such as furniture and lighting particularly hard hit.
2:27
Play Video – UK economy grows by 0.2%
The UK economy grew slightly in the three months to June, according to official estimates.
Retail sales figures are important as household consumption is the largest expenditure across the UK economy.
Prime Minister Rishi Sunak set himself the goal to grow the economy as part of his five promises.
The latest figures play a role in monthly economic growth figures which track UK GDP (gross domestic product).
Economist have attributed the fall to the weather, rather than inflation and the increased cost of borrowing from the Bank of England’s rate hikes.
Related Topics
