The latest figures from the Office for National Statistics (ONS) have highlighted the impact of the Paris Olympics and The UEFA European Football Championship, with sports equipment stores reporting a boost.
More broadly, ONS data showed retail sales volumes rose by 0.5% in July 2024, following a fall of 0.9% in June. Over the past three months, sales volumes rose by 1.1%, when compared with the three months to April. Department stores also witnessed volume growth following summer discounts.
ONS director of economic statistics, Liz McKeown stressed that despite offers and sport successes, “these increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.”
Textile, clothing and footwear stores saw a -0.1% drop in July. However, the month was positive for ecommerce, increasing 2.5% for the month and by 3.6% compared with July 2023.
“The high cost of living is still bearing down on consumers, but with interest rates finally easing, retailers are hopeful that this will buoy consumers confidence, and with it greater spending, particularly as we head into August,” added Kris Hamer, director of insight at the British Retail Consortium.
“Retailers are working closely with government to maximise the industry’s contribution to economic growth. But, with headline inflation showing signs of rising further, retailers face the prospect of another large rise in business rates next year. As retail businesses plan their investment strategies, many will be looking ahead to the Autumn Budget, keen to end 14 years of Conservative business rates rises which has seen the tax rate rise 30%, harming the viability of many retail stores across the country.”
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