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.
- Department store sales volumes declined by 1.7%.
- Inflation dropped to 2.6% in June.
UK retail sales volume rose 1% in June, exceeding analyst expectations and defying predictions of a 0.3% decline. The increase was driven by a heatwave and online shopping promotions, with non-store retailing sales soaring 4.4%. Online sales reached their highest proportion since spring 2021. Textile clothing and footwear stores also saw a 1.9% rise. However, department stores reported a 1.7% decline, and household goods stores fell 0.6%. Automotive fuel sales decreased by 0.8% in June, contributing to a 6% drop over the quarter. Inflation unexpectedly fell to 2.6% from 2.8%, largely due to lower fuel prices. Analysts noted potential headwinds from rising energy prices and interest rates.