Retail Sales Show Resilience with 0.7% Increase in June

The latest estimates for retail sales in the UK indicate a 0.7% increase in volume terms during June 2023. This growth was seen across all major sectors, including food, non-food, and non-store retailing, except for automotive fuel, which experienced a slight decline. This follows a revised increase of 0.1% in May 2023 (previously reported as 0.3%).

Quarterly data also showed a positive trend, with retail sales volumes rising by 0.4% in the three months to June 2023, compared to the preceding three months ending in March 2023.

Non-food stores recorded a notable rebound in June 2023, with sales volumes rising by 1.0%. This comes after a decline of 0.5% in May 2023. Department stores and furniture retailers reported that summer sales and increased footfall contributed to the boost in volumes.

Similarly, food stores experienced a recovery, with sales volumes growing by 0.7% in June 2023, following a 0.4% fall in May 2023. Supermarkets attributed this improvement to favorable weather conditions and promotional activities.

Non-store retailing, which includes online sales, saw a moderate increase of 0.2% in sales volumes during June 2023, following a substantial rise of 2.4% in May 2023.

In contrast, automotive fuel sales volumes declined by 0.3% in June 2023, after a notable increase of 1.7% in the previous month.

The divergence between retail sales volumes and values continued, as prices continued to impact the industry. While retail sales were 17.9% higher in value terms compared to February 2020, the volumes remained 0.2% lower during the same period.

Retailers remain optimistic about the future, and the positive growth in sales volumes across various sectors indicates a gradual recovery in the UK retail industry.