British retail sales soften in July after June World Cup boost

[LONDON] British retail sales fell back as expected in July after a surge in June when hot weather boosted demand for fans and air conditioners and supermarkets offered promotions alongside the men’s soccer World Cup, official figures showed on Friday (Aug 21).

Retail sales volumes last month dropped 0.5 per cent from June, in line with economists’ median forecast in a Reuters poll, while annual sales growth slowed to 1.6 per cent in July from a downwardly revised 3.8 per cent, slightly below expectations for a fall to 2.2 per cent.

Consumer sentiment surveys suggest demand has proven robust, despite higher energy costs caused by the US-Iran war, offering a boost to new Prime Minister Andy Burnham who has tried to mollify voter anger about the cost of living since taking office in July.

GfK’s long-running confidence indicator, released earlier on Friday, rose to a two-year high in August – its highest since just after Burnham’s predecessor Keir Starmer came to power.

Recent updates from major British retailers have revealed mixed fortunes.

Clothing retailer Next edged up its annual profit outlook for the third time this year, with sales boosted by the country’s prolonged period of hot weather.

SEE ALSO

UK consumer confidence climbs to two-year high: GfK survey

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

However, sportswear and fashion retailer JD Sports issued a profit warning, though it was weakness in US markets, rather than in Britain, which prompted it. REUTERS