A combination of the UEFA Euro 2024 football tournament and mid-year discounting has provided a much-needed boost to the UK retail sector, with sales rebounding in July.
According to the country’s Office for National Statistics (ONS), retail sales volumes increased by 0.5% compared to June, following a revised 0.9% decline in the previous month.
Go deeper with GlobalData
Department stores and sports equipment retailers were the primary beneficiaries of the uptick, as consumers increased spending on discretionary items.
However, the broader retail landscape remains challenging, with clothing and furniture sales continuing to struggle.
The ONS reported a ‘poor month’ for these categories.
While the July figures offer a glimmer of hope, the UK’s retail industry is still navigating a complex economic environment.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPersistent inflationary pressures and the ongoing cost-of-living crisis continue to dampen consumer spending power, particularly for higher-ticket items.
This cautious consumer sentiment is reflected in the month’s overall sales figures, which fell short of analyst expectations.
Despite these headwinds, the retail sector is demonstrating resilience.
The shift towards online shopping continues to gain momentum, with e-commerce sales accounting for 27.8% of total sales in July.
This trend is expected to persist as consumers seek convenience and a wider range of product options.
Looking ahead, retailers must adopt a strategic approach to weather the ongoing economic uncertainties.
A focus on providing value, enhancing customer experience, and optimising inventory management will be essential for driving sales and profitability.
Additionally, retailers should closely monitor consumer behaviour and preferences to identify emerging trends and opportunities.
As the UK economy evolves, the retail sector will undoubtedly face further challenges and opportunities.
The ability to adapt to these changing conditions will be crucial for long-term success.
