Bounce back in retail sales short-lived in June

The latest ONS figures show retail sales volumes fell by 1.2% in June, driven by department stores (down 3.4%), household goods (down 2.1%) and clothing (down 1.6%).

Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, comments: 'Retailers will be disappointed to see May’s bounce back in retail sales was short-lived, with election uncertainty and poor weather pushing sales volumes back in the red in June. Despite continued improvement in consumer confidence, sadly, this failed to translate into sales as a reluctance to spend took over.

'Not even Taylor Swift’s UK tour and Glastonbury were able to provide a boost in clothing sales. The hope is that there are more positive months to come, helped by better weather and various sporting events including Wimbledon, the Euros and the Paris Olympics.

'Retailers are looking to the government for support. As announced in the King’s Speech, legislation to tackle retail crime is crucial, as it often has devastating repercussions. But there was no mention of business rates, the biggest burden for the sector, so clarity is needed on what proposed reform will look like in practice.'