Retail sales volumes grew by 0.9% in June, following a 2.8% fall the month before, with retailers reporting that the warmest June on record drove sales. Retailers reported rises across most sectors, according to the latest ONS figures.
The biggest growth was seen in the volume of sales of automotive fuel, non-store retailing (which includes online retailing) and department stores. Sales volumes in food stores also grew, up by 0.7% in June following a 5.4% fall in May. The warm weather is said to have boosted drinks sales in particular.
Online growth
The amount spent online rose by 2.3% over the month to June 2025 and by 4.5% compared to June 2024. Over the second quarter, online sales values rose by 3.3% compared to the three months to March 2025.
Online sales were strongest for household goods stores, up by more than 6% for the month. Department stores and food stores also saw strong online growth over the month. Overall, the proportion of online sales grew to 27.8% in June, up from 27.8% in May.
Meanwhile, Shopify’s figures also showed summer boosts, with month-on-month sales of evaporative coolers up more than 2,000% in June, household insect repellents up 606.5%, allergy relief up 479.4% and ice cream makers up 186.4%.
Concern for the second half
Although the positive ONS sales figures were welcomed after a dramatic fall in May, there is concern for the second half. Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said: “June’s retail sales figures point to a welcome rebound after May’s dramatic fall. Retailers successfully unlocked demand through timely promotional offers and clear value messaging.”
“As we move into the second half of the year, the question is whether May was an isolated blip or an early sign of strain. Much will hinge on how the sector prepares for a potentially challenging Autumn.”
Phil Monkhouse, UK country manager at global financial services firm Ebury, agreed: “Threats to future spending appear to be just around the corner with the Bank of England holding off further rate cuts, inflation rising far quicker than expected and a stagnating job market all pointing to a downturn in consumer confidence and spending ahead.”
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, said retailers will be hoping for help from the government. “Nervousness among consumers persists. Concerns remain in the sector, as retailers increasingly run out of headroom to mitigate rising costs.”
“Many will be hoping the government steps in to provide meaningful reductions in business rates, as well as raising the threshold at which employers’ National Insurance becomes payable. It’s also hoped that the reintroduction of tax-free shopping is brought back on the table, so the sector doesn’t miss out further on valuable retail spend.”
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