Retail Sales Dip in July Amid Mixed Economic Signals
Monthly decline contrasts with three-month growth and rising consumer confidence, as World Cup boosts drink sales.
Carla Rooney
Retail sales volumes fell by 0.5 per cent in July.
Grant Fitzner confirmed growth across all main sectors during this three-month period, with the sole exception of motor fuel.
Fitzner further stated that hot weather and strategic promotions bolstered sales of outdoor products and items such as fans; clothing and online sports merchandise also performed strongly.
Retailers specializing in alcoholic drinks saw robust performance in July, driven by heatwaves and the World Cup.
Pubs and sports bars, classified within the hospitality sector, reportedly benefited significantly from World Cup matches, pouring an additional 30 million pints and generating an extra £150 million in sales.
Jacqueline Windsor indicated that Successive heatwaves and World Cup celebrations boosted grocery sales, particularly for beer and 'picky bits', the earlier timing of discounting impacted large online and fashion retailers.
The Office for National Statistics (ONS) indicates that the drop in retail sales resulted partly from a July decline in non-food sales.
British retailers reportedly advanced promotions to June due to the hot weather, a move Jacqueline Windsor noted pulled forward sales typically occurring in July.
Windsor explained that while successive heatwaves and World Cup celebrations boosted grocery sales, particularly for beer and 'picky bits', the earlier timing of discounting impacted large online and fashion retailers.
The GfK consumer confidence survey rose two points to -14 in July, reaching its highest level in two years.
However, renewed tensions in Iran and a jump in energy bills last month are understood to have dented consumer finances.
Brent crude oil traded at $93.42 a barrel.
Asian share indices showed mixed results on Friday: Japan's Nikkei fell 0.53%, South Korea's Kospi rose 0.87%, and Hong Kong's Hang Seng gained 0.92%.