UK Retail Sales Report summary
July 2024
Period covered: 26 May – 29 June 2024
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Retail sales
Retail sales declined by xx% year-on-year in June according to the Retail Economics Retail Sales Index, impacted by factors including cooler weather; seasonal events; the Euro 2024; and political uncertainty.
Key factors impacting sales in the month include:
‘Wait and see’ in June: The announcement of the general election on 4 July led households to adopt a cautious 'wait and see' approach, with consumer confidence rising only xx point and increased savings affecting big-ticket purchases, while mortgage approvals fell to xx in May and mortgage borrowing declined to £xx.
Cooler temperatures: June's cooler and wetter weather compared to last year dampened spending intentions, with DIY & Gardening slipping in growth rankings and xx% of consumers spending less on Clothing & Footwear, though footfall increased by xx% in the third week of June due to warmer weather, Euro 2024, and Taylor Swift's tour.
Euro 2024 kicks off: The UEFA Euro 2024 tournament boosted sales in categories like beer, with sales surging by xx% on days England played, and sporting gear, while non-essential spending shifted towards experiences and holidays, impacting big-ticket items like Furniture & Flooring (xx%) but accelerating sales of smaller indulgences such as Health & Beauty.
Social commerce growth:
New research by Retail Economics and TikTok highlights the rapid uptake of social commerce, which is expected to more than double from £7.4 billion to nearly £xx billion by 2028, accounting for xx% of total online sales, up from 6% today, growing xx times faster than overall e-commerce. The rise of seamless social integrations with e-commerce and the popularity of shoppable formats like live shopping and interactive ads are driving this growth.
Beauty and apparel are the most affected categories, with over xx in three shoppers making purchases in these areas on social media, led by brands like Zara and Puma creating engaging and authentic content tailored for social commerce.
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Sales volumes edged up as retail inflation eased
Source: ONS, Retail Economics analysis
