UK retail sales boosted by World Cup and good weather - BRC
UK retailers are enjoying better trading amid sunny weather and England’s World Cup run, with not just waistcoats but also and beer, barbeques and big-screen TV driving increased sales.
Total retail sales in the three months to June were 2.3% higher than at this point last year, the retail sales monitor survey from the British Retail Consortium and KPMG revealed. Like-for-like sales were up 1.1% in the period.
Online sales grew 8.5% year-on-year in June, which was below the rolling three-month average of 9.0%.
Sales of non-food items increased for the second month, up 0.8% in the three months to June, but decreased 0.2% on a LFL basis, while in-store non-food sales declined 1.4% or 2.7% on a LFL basis.
Food sales increased 1.7% on a total basis in the three months to June and 0.3% on a LFL basis, including April, which was negatively distorted by the timing of Easter.
"Beer, barbeques and big TVs lifted June’s sales as warm weather and world cup fever gripped the nation," said BRC chief executive Helen Dickinson.
"However, with consumers engrossed in the agony and ecstasy of each match, spending on many other items fell. In the end, June scored solid, but not sensational, sales.
“The reality is that sales don’t grow on the feel-good factor alone. With household incomes still barely growing faster than inflation, conditions for consumers and retailers remain extremely tough. And things could get tougher: once the euphoria of sporting success subsides, without a deal on Brexit, shoppers face the prospect of significant price increases and shortages of everyday goods. Even if England do go all the way, households may have little to celebrate come next April.”
Analysts at broker Shore Capital said that as the sales being helped by the improved mood of the nation due to good weather and a better than expected run in the World Cup, "This then begs the question does this upturn fall away without these factors.
"Our view is not entirely but with one eye on the petrol pump price where unleaded is not far off 130ppl and uncertainty in the political backdrop we are not calling a consumer recovery yet.
"From an investor perspective this data supports our ongoing preferences in UK retail for grocers, pure play and premium apparel, good discount and credible self-help."