Key facts
- UK retail sales grew 1.9% year-on-year in June, up from 0.8% in May.
- Physical store sales declined 1.1%, while online non-food sales rose 5.1%.
- The heatwave and World Cup boosted spending on items like beer, clothing, and cooling appliances.
- Pubs experienced significant sales increases, particularly during England's World Cup matches.
- OPEC+ members are reportedly discussing potential production cuts amid demand concerns.
UK retail sales saw a modest year-on-year increase of 1.9% in June, a notable pickup from the 0.8% growth recorded in May, according to data from Barclays Bank. This growth was largely driven by consumer spending on beer and online shopping, spurred by the summer heatwave and the men's football World Cup. Pubs experienced a significant boost, with sales surging during key England matches. The heatwave also led to increased sales of clothing and cooling appliances, with department stores performing particularly well.
However, sales in physical stores declined by 1.1% as consumers opted to shop online to avoid the high temperatures. Online non-food sales saw a substantial jump of 5.1%, pushing the online penetration rate to 39%. Retail trade bodies, including the British Retail Consortium (BRC), highlighted the challenges faced by high street shops due to the heat, rising business rates, and global uncertainty. The BRC's chief executive, Helen Dickinson, called for reforms to business rates.
Meanwhile, global oil prices have dipped as OPEC+ members are reportedly considering potential production cuts. This development comes amid concerns about global demand for crude oil.