Retail sales rise in July driven by discounts and sporting events
Source:Mintel16-08-2024
UK 16-08-2024
Retail sales volumes rebounded in July, up 1.6% year-on-year on a non-seasonally adjusted basis. Department store sales grew by 4.2% year-on-year, driven by summer discounting and sporting events, such as the European football Championship. Non-store sales continued to be strong with a 6.9% increase.
Meanwhile, food store sales volumes were down by 0.1%. Clothing sales saw a 5.5% drop in retail sales compared to the previous year, and household sales fell by 6.3%.
Mintel comment:
“After a disappointing June, July did bring some good news for the retail sector, with total sales up year-on-year on a value and volume basis.
Better weather and Euros excitement were key drivers across both food and non-food. Within grocery, volumes remained flat but the performance of England did play a role, with sales at alcohol specialists (+5.8%) particularly strong.
In non-foods the better weather was a driver to both overall value and volume growth, but discretionary spend remains under pressure. Fashion demand improved a little, but widespread discounting in clothing meant volumes remained in significant decline, although there was a better performance from footwear. Home demand remains difficult, but DIY had a good month with positive value and volume growth, while health and beauty had an exceptional month helped by both the weather and travel demand picking up.
July was a step in the right direction, but the pattern of demand has been mixed so far in 2024. Continued good weather in August and the Olympics will hopefully have continued this trend, but as highlighted by Mintel’s latest Household Confidence Tracker, there is still much financial pressure and caution from consumers within the market.”
