The latest ONS retail sales figures show volumes were up 0.9% in June, driven by department stores (up 2.1%), clothing and footwear (up 1.0%), and food stores (up 0.7%).

Jacqui Baker, Head of Retail at RSM UK and chair of ICAEW’s Retail Group, comments: “Retail was one of the winners from June’s heatwave. The hot weather helped to lift the mood among consumers, while early sales tempted shoppers to the high street. Consumers purchased new outfits ahead of major sporting events in July including Wimbledon and summer headline concerts led by Beyonce and Oasis.

“Garden parties were in full swing as households stocked up on barbeque food, boosting food sales. The launch of the Nintendo Switch 2 also gave us an indicator for an uplift in electrical goods.

“While the June figures are welcome news and consumer confidence ticked up last month, nervousness among consumers persists, and the unexpected rise in inflation won’t have helped. The higher price of essentials such as food and fuel will only add to the reluctance among consumers to spend as their discretionary income shrinks.

“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.”