British retailers saw sales tick slightly higher last month after a boost from the Euro 2024 football tournament and summer discounting, according to official figures.
High street retailers said sales of football shirts, electronics such as TVs, and alcoholic drinks were all stronger amid England’s journey to the Euros final.
Total retail sales volumes, which measure the quantity bought, rose by 0.5% in July, the Office for National Statistics (ONS) said.
It was, however, slightly below predictions, with a consensus of economists forecasting a 0.7% increase for the month.
ONS director of economic statistics, Liz McKeown, said: “Retail sales grew in July led by increases in department stores and sports equipment shops, with both the Euros and discounting across many stores boosting sales.
“These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.”
The data showed that non-food stores saw a 1.4% rise, driven by a strong performance from department stores, where sales grew by 4% for the month as summer sales helped to stoke demand.
However, clothing and footwear shops saw a 0.6% dip, whilst homeware retailers also saw volumes fall 0.6%.
Retail sales rose 0.5% in July 2024, following a revised fall of 0.9% in June
Department stores and sports equipment stores reported a boost following summer discounts and sporting events.
Read more ➡️ https://t.co/wqQfLrF1aq pic.twitter.com/SRe079pei7
— Office for National Statistics (ONS) (@ONS) August 16, 2024
Food stores, meanwhile, saw sales remain flat for the month.
Kris Hamer, director of insight at the British Retail Consortium (BRC), said: “Following the gloomy start to summer spending, retailers welcomed the warmer July weather which gave sales growth a boost, particularly in areas such as cosmetics, clothing, footwear, and books as consumers prepared for their summer holidays.
“Computing also sold well as people upgraded their home office tech purchases.
“Meanwhile, homeware and furniture performed badly, as people concentrated their spending on summer experiences.”
Tom Youldon, partner at McKinsey & Company, said: “With sales volumes increasing across most categories, many retailers will be cautiously optimistic.
“Fragile consumer confidence may be lifted as inflation continues to hover close to the 2% mark and the first cut to interest rates since 2020 starts to feed through to household budgets.”
