Key facts
- UK retail sales volume increased by 1% in June.
- Online shopping accounted for the largest proportion of total retail sales since spring 2021.
- Non-store retailing experienced a 4.4% rise in sales.
- Fuel sales saw a 0.8% decrease in June.
- Inflation dropped to 2.6% in June.
Retail sales in the UK saw a significant boost in June, with sales volumes jumping by 1%, an acceleration from the 1.2% growth recorded in May. This surge was largely attributed to a heatwave and extensive discounting, which drove consumers towards online shopping. According to the Office for National Statistics (ONS), online shopping's share of total retail sales reached its highest point since spring 2021, a period when pandemic restrictions kept many away from physical stores.
Non-store retailing, which includes online sales, experienced the most substantial growth, rising by 4.4%. In contrast, department store sales volumes declined by 1.7%. Sales at food stores saw a modest increase of 0.3%, while purchases at household goods stores fell by 0.6%.
The ONS noted that internet retailers performed particularly well due to promotions and warm weather, with high demand for outdoor products, air conditioning, and clothing. Hannah Finselbach, a senior statistician at the ONS, highlighted these factors contributing to the strong online performance.
Separately, demand for automotive fuel has fallen sharply over the last quarter, with a 0.8% decrease in June alone. This follows a period of stockpiling earlier in the year, with soaring energy prices in April deterring motorists from purchasing fuel. Inflation also saw a surprise drop from 2.8% to 2.6% in June, primarily due to the decline in fuel prices. However, energy prices are anticipated to increase again amid renewed tensions between the US and Iran, including Houthi attacks on tankers in the Red Sea.