UK July Sales: In July, excessive weather prevented UK shoppers from buying, compounding rising costs and interest rates. Because of this, UK July sales decreased more than expected.
Recent sales were 1.2% lower than June. This month’s sales volumes dropped more than the 0.5% dip Reuters polled analysts to forecast. Last month’s sales were 1.2% lower.
Investors tried to determine how much this sales dip was linked to a larger UK economic slowdown beyond July being the sixth-wettest month since 1836. This slowness was driven by more than July being the sixth-wettest month since 1836. These considerations led to the goal of decreasing the pound.
The hot, sticky weather and high expense of living slowed clothing and food sales in July. This made supermarkets’ already tough competition much harder. The ONS’s Deputy Director for Surveys and Economic Indicators, Heather Bovill, has commented on department stores’ poor performance and low home goods sales.
Bad weather caused a shift toward online buying. July saw 27.4% of retail purchases generated online, up from 26.0% in June and the most since February 2022. This was the highest proportion since February 2022. Food store sales fell 2.6% per month, while other store sales fell 1.7%.
July sales fell sharply after June’s excellent performance. The good June result was bolstered by a heatwave that increased spending.
Last month’s roughly 7% inflation made it hard for customers to survive. This is on top of weather uncertainty. While it has dropped from its all-time high of about 11% in October of the year prior, it remains the highest of all major economies.
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Sales declined in July for the second month in 2023, which is interesting. This indicates strong client demand. Economists expect the Bank of England’s gradual interest rate hike to hurt consumer spending in the second half of 2023. The Bank of England intends to boost interest rates, thus this prediction.
Ruth Gregory, Capital Economics’ Deputy Chief UK Economist, believes high interest rates might reduce real consumer expenditure by 0.5% from peak to low. She makes this judgment based on history. She discussed her feelings in an interview.
Samuel Tombs of Pantheon Macroeconomics said greater pay growth and declining inflation indicate a brighter future. GfK, a market research firm, recently released the results of a study. The poll revealed July consumer confidence fell.
A survey released this week found that basic salary growth is at its highest since 2001. The study, released this week, was conducted by US and Canadian researchers. This is bad for the Bank of England, which worries about how long high inflation will stay, but it’s good for consumers because wages are starting to rise with prices.
Tombs predicts that real money spent on wants will rise significantly in the future. Big retailers Next and Marks & Spencer reported solid sales and boosted their profit predictions despite July’s harsh weather. There are still failing enterprises in the field. The privately owned homewares and household products business Wilko sent in a government petition that threatens 12,500 jobs.
The ONS reported 3.2% lower shop sales than previous year. Economists projected a 2.1% reduction, so this result is surprising.
Our Reader’s Queries
When summer sales start in the UK?
Summer is a prime season for sales in the UK, as numerous retailers offer markdowns on their summer collections. These sales typically commence in late June or early July and can span over several weeks. You can avail discounts on a diverse range of products, such as clothing, footwear, accessories, and homewares.
What are the most popular categories for online purchases in the UK as of June 2023?
In the UK, when it comes to online shopping, Clothing and Shoes are the top picks for consumers. According to our recent online survey, 56 percent of respondents chose Clothing while 38 percent opted for Shoes. The survey was conducted in 2023 and had 3,022 participants.
How big is the retail market in the UK 2023?
The retail sales value in the UK for August was recorded at 38.09 billion GBP, slightly lower than the previous month’s figure of 39.01 billion GBP. However, the sales value for June was higher at 48.66 billion GBP. May’s sales value was recorded at 39.14 billion GBP. These figures indicate a fluctuation in the retail sales market in the UK.
Is July slow for retail?
During the summer months of July and August, retailers may face a tough time as consumers tend to prioritize outdoor activities and vacations over shopping. This can lead to a decline in sales, especially for non-seasonal items. It’s important for retailers to be aware of this trend and adjust their strategies accordingly to stay competitive during this time.