Data published by the Office for National Statistics (ONS) showed that retail sales fell by 1.2% in June, partially offsetting the May increase (+2.9%). This was the fourth decrease in the last 5 months. Economists had expected a 0.4% decrease. Sales volumes fell across most sectors, with department stores and clothing retailers broadly returning to their Quarter 1 2024 levels.
For the three-month period (through June), sales volumes fell by 0.1% when compared with the previous three months and fell by 0.2% when compared with the three months to June 2023.
Meanwhile, in June, retail sales excluding fuel declined by 1.5% after rising by 2.9% in May. Consensus estimates suggested a 0.5% drop.
The data also showed that, in annual terms, retail sales decreased by 0.2% in June after jumping by 1.7% in May (revised from +1.3%). Economists had expected a 0.2% increase.
The ONS said that automotive fuel sales volumes rose by 2.2% m/m in June. Non-food stores sales volumes (the total of department, clothing, household, and other non-food stores) fell by 2.1% after rising 3.3% in May. All sub-sectors fell over the month, with strong downward contributions from department stores, clothing and footwear retailers, and furniture stores. Food stores fell by 1.1% in June. This was mainly due to supermarkets. Retailer commentary suggested that both poor weather and economic conditions had an effect, as consumers showed caution with their spending. The data also showed the amount spent online, known as online spending values, fell by 2.7% mom, but rose by 2.3% per annum. The proportion of online sales decreased from 27.5% in May (revised from 27.2%) to 27.1% in June.