The Office for National Statistics has reported retail sales figures in Great Britain for June that sales volumes rose by 0.9% in June following a fall of 2.7% in May but below estimates of a 1.2% rise.
Non-food store sales volumes fell by 1.5%. Food rose by 0.7% following a fall of 5% in May. Clothing sales volumes rose by 1%.
Isaac Stell, Investment Manager at Wealth Club said, “Retail sales recovered some ground in June following a slump in May with the weather reportedly coming to the rescue of retailers once again.
Sales volumes rose across most sectors, with department stores and clothing retailers showing particular strength.
The warm weather ensured food sales and in particular the sales of drink recovered from their May hangover where volumes fell substantially.
“Despite the rebound seen in June, the latest data is weaker than had been anticipated. The sharp fall in May and underwhelming recovery in June suggest that the consumer isn’t in a position of strength. With a weakening labour market, wage growth falling and inflation rising, the squeeze is clearly continuing to be felt.
“It would be blue sky thinking to say any sort of recovery is underway.”
Sagar Shah, Associate Partner at McKinsey & Company said, “June’s heatwave didn’t just bring out the sunshine – it brought shoppers to the tills. Father’s Day, picnics, and sporting events, all helped to see retail sales increase by 0.9%.
“Food sales increased by 0.7%, due to increase in drinks due to the warm weather. This uptick aligns with our June 2025 consumer research data, revealing a third of shoppers planned to splurge on groceries over the summer.
“Automotive fuel sales volumes also increased 2.8%,the largest monthly rise since May 2024, likely driven by summer travel plans and sunnier days encouraging families to head outdoors.
“Retailers are operating in a climate where sentiment and spending no longer move in step. Shoppers are increasingly unpredictable, and historic trends only tell part of the story. Real-time insights into customer behaviour will be crucial for anticipating trends before they hit the shelves.”
