Deloitte comments on ONS Retail Sales figures
19 July 2018
Commenting on today’s ONS retail sales figures, Ian Geddes, head of retail at Deloitte, said:
“June’s retail sales vales (ex-fuel) increased 4.4% year-on-year, while volumes increased by 3%. This positive longer term trend comes despite sales values and volume seen a month-on-month decline of -0.7% and -0.6% respectively. Food and grocery was a big winner, recording its biggest quarterly growth in sales since May 2001, at 2.2%. Online sales remain firm at 18% of total retail sales.
“Despite the weather, UK consumers were not entirely walking on sunshine in June. Non-food retail saw an impact to high street footfall, caused largely by the summer weather and ‘must watch’ nature of the England team’s successful run in the World Cup. This accounted for the month-on-month slip in retail sales volumes and values. The longer-term picture is more positive, however, and this should be welcome news to traditional bricks-and-mortar retailers who have been challenged of late by rising costs, increasing online competition and continued technological disruption.
“The rise in consumer confidence over the last quarter will hopefully continue through Q3 and beyond after a first half of 2018 that has been a considerable test for consumer-facing businesses. In an effort to remain as profitable and competitive as possible, we continue to see retailers make bold strategic decisions in an attempt to re-engage consumers and change fortunes.”
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