Commenting on today’s ONS retail sales figures, Ian Geddes, UK head of retail at Deloitte, said:
21 July 2016
“Despite a slight monthly drop in sales volumes of 0.9%, June’s figures show a strong year-on-year rise of 4.3%. While many will look for the negatives, these are essentially very positive results. The continuing growth of online sales volumes, up 0.5% from the previous month and 14.1% from June 2015, highlights that online continues to be the key driver of growth in the market.
“In a week when the country has been scrabbling for shade, it is easy to forget June’s damp start to summer. This could have been damaging to retailers’ prospects, and we have already seen deep discounts from those hoping to shift unsold stock. Despite the rain and England’s early exit from the Euros, the UK retail industry has remained remarkably resilient. Retailers will be buoyed by consumers’ ‘keep calm and carry on’ approach.
“It will be a number of months before we see how the decision to leave the EU will affect UK spending habits. We believe that some retailers saw a dip in sales immediately following the result of the vote, but sales volumes recovered quickly. Nevertheless, the industry will be faced with short-term uncertainty and, as the details of the leave process continues to emerge, retailers will need to be ready to react quickly to changing consumer spending habits. Having a strong online strategy and flexible supply chain models will be vital in order to maintain competitiveness.
“With summer well and truly under away, it is likely we will see an uplift in retail spending in July. British success at Wimbledon and a speedier-than-planned appointment of a new Prime Minister could also give a timely boost to consumer confidence, which will be a crucial measurement of the UK’s economic health in the coming months.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.