June’s retail sales increased by 3.2% year-on-year, marking a recovery.
- Online sales showed significant growth, up by 9.8%, bolstering retail figures.
- In-store fashion sales declined by 6.7%, contrasting other sectors.
- Lifestyle and homeware sectors recorded growth of 7.5% and 3%, respectively.
- The government’s new plan aims to revitalise struggling high streets.
June saw a notable 3.2% increase in retail sales compared to the same month the previous year. This marks the most significant sales growth since August 2023, as reported by BDO’s High Street Sales Tracker. This positive trend follows a difficult period of five consecutive months of negative results, highlighting a shift in consumer spending patterns primarily favouring online platforms.
Online retail sales emerged as the cornerstone of this recovery, experiencing a robust increase of 9.8%. In contrast, in-store sales showed a modest growth of 1.8%. The surge in online sales managed to offset weaker performances in physical retail spaces, reflecting changing consumer preferences.
The fashion industry, however, lagged behind other sectors, with in-store fashion sales declining by 6.7%. Despite this, online fashion sales showed a modest increase of 9.9%, leading to an overall negligible growth of 0.9% in the fashion sector. This underperformance highlights ongoing challenges faced by fashion retailers.
In comparison, the lifestyle and homeware sectors demonstrated resilience, posting growth rates of 7.5% and 3% respectively. These figures indicate a shift in consumer priorities towards home and lifestyle products, diverging from fashion.
Sophie Michael, head of retail and wholesale at BDO, commented on the current landscape: “Despite strong growth in online sales, the performance on the high street continues to be very disappointing. “The government’s recently announced five-point plan aims to rejuvenate the UK’s high streets. However, for many retailers, this assistance cannot arrive soon enough.
The retail sector is showing signs of recovery, yet the fashion industry remains an area of concern, necessitating strategic interventions.
