Belfast Telegraph

UK retail sales on up as temperatur­es rise

- BY BEN WOODS

sales rebounded last month as one of the warmest Junes on record inspired a spending spree on summer clothes and beauty products.

Figures from the British Retail Consortium (BRC) and KPMG showed total sales rose by 2% in June, up from 0.2% growth for the same month last year.

Online sales of non-food products also bounced back from May’s record lows, expanding by 10.1% last month in contrast to a 9% jump in June 2016.

Paul Martin, KPMG’s UK head of retail, said businesses should remain cautious, with inflation and household debt “fuelling part of this retail growth”.

He said: “For fashion retailers the boost in sales could not have come soon enough. Following a challengin­g year so far, it appears the higher temperatur­es thankfully provided an increased interest in summer collection­s.

“Elsewhere, the sun also shone on health and beauty sales too, with the category continuing to be a top performer.”

On a like-for-like basis, sales grew by 1.2% over the period, compared to a 0.5% fall last year. Total food sales also expanded, by 4.7% for the three months to June — the strongest 16-week average since February 2012.

While the warm weather heralded a “welcome pick-up” for sales growth, BRC chief executive Helen Dickinson questioned whether spending could continRETA­IL ue amid rising inflation and sluggish wage growth.

Inflation jumped to a fouryear high at 2.9% in May, according to the Office for National Statistics (ONS), while average earnings recorded a month-onmonth fall of 0.2% to grow by 2.1% in April.

Ms Dickinson said: “The sixmonth average, buoyed by June’s strong performanc­e, now paints a slightly rosier picture for retail sales.”

 ??  ?? Positive: Helen Dickinson
Positive: Helen Dickinson

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