UK retail sales experienced a modest increase of 0.5% year-on-year (YoY) in July, a slight deceleration from the 1.5% growth seen in the same month of 2023, as reported by the British Retail Consortium (BRC) and KPMG Retail Sales Monitor.
Total retail sales in the UK experienced a decline of 0.2% in June 2024.
The latest figure surpassed the three-month average growth of 0.3% but fell short of the 1.4% 12-month average growth.
Food sales saw a 2.6% increase over the three months to July 2024, a significant drop from the 8.4% growth in July of the previous year and below the 12-month average growth of 5.3%.
Despite this, food sales were up YoY for July.
However, non-food sales declined by 1.7% over the three months to July, compared to a 0.5% decrease in July 2023.
This performance was better than the 12-month average decline of 1.8%.
Non-food sales continued to struggle, with in-store sales dropping by 2.7% year-on-year (YoY), a steeper decline than the 12-month average of 1.7%.
Online non-food sales, however, saw a 0.3% increase YoY in July, aligning with the three-month average and outperforming the 12-month average decline of 2.0%.
The online penetration rate for non-food items rose to 35.5% in July, up from 34.9% the previous year but still below the 12-month average of 36.3%.
BRC chief executive Helen Dickinson OBE said: "Retail sales returned to growth, driven by an increase in food purchases. The late arrival of British sunshine led to a better month for summer clothing and health and beauty products as shoppers prepared for days out with friends and holidays away.
“However, as consumers spent on holidays and entertainment, sales of indoor goods, such as furniture and household appliances, were squeezed out. This left non-food once again in negative growth, particularly for in-store sales.
"Now that election uncertainty is over and the government is rolling out plans to kickstart economic growth, retailers are planning their own investment strategies. Many will be looking to the Autumn Budget, keen to see an end to business rates rises under the new Labour government. They will also be looking for any details of the reform of the whole business rates system, promised in Labour’s manifesto.”
