Heatwave helps retail sales rebound in June

Yahoo

25-07-2025

June's heatwave helped retail sales to bounce back last month as the record hot weather boosted sales of food and drink, according to official figures.
The Office for National Statistics (ONS) said the total volume of retail sales rose by 0.9% in June, having fallen by a downwardly revised 2.8% in May.
The ONS said demand jumped for non-alcoholic and alcoholic drinks in the searing temperatures, while motor fuel sales also leapt by the biggest amount for over a year as Britons 'ventured out'.
June saw the first of three heatwaves so far this summer at the start of the month, with temperatures reaching highs above 33C, before rounding off the month with another heatwave for some parts of England, reaching more than 33C again on June 30.
It was the hottest June on record for England and the second warmest for the UK as a whole, according to the Met Office.
But the retail sales rebound was not as pronounced as the 1.1% jump pencilled in by most economists and means that overall, retail sales volumes rose by 0.2% quarter-on quarter in the three months to the end of June.
This is down from 1.3% quarterly growth at the start of the year.
The pound weakened as the weaker-than-forecast growth added to signs of muted activity in the wider economy.
Sterling fell to its lowest level against the single currency since April, down 0.2% at 1.15 euros, while it was also 0.3% down at 1.35 US dollars.
Hannah Finselbach, senior statistician at the ONS, said: 'Following a poor May, it was an improved month for retail sales with growth across all main sectors.
'The warm weather in June helped to brighten sales, with supermarket retailers reporting stronger trading and an increase in drink purchases.
'It was also a good month for fuel sales as consumers ventured out and about in the sunshine.
'Looking at broader trends, retail sales are up slightly across the latest quarter, but are down when compared with pre-pandemic levels.'
The ONS said food stores saw sales rise 0.7% month-on-month in June, which followed a 5.4% fall in May.
'This rise was mainly because of improved sales volumes in supermarkets, with some retailer comments mentioning increased sales of drinks because of the warm weather,' the ONS said.
Online retailers also saw solid trade, with sales up 1.7% last month, which is the highest since February 2022.
This was largely down to sales promotions, as well as the good weather, according to the ONS.
Sales at the petrol pumps also jumped, up by 2.8%, which marked the biggest rise since May 2024.
The ONS said clothing sales were given a boost as shoppers snapped up summer ranges, with sales of clothing and footwear up 1% in June.
Non-food shops, such as department stores, saw sales edge just 0.2% higher as trade was held back by lower demand for household goods and furnishings and as shoppers stayed away in the heat.
Matt Swannell, chief economic adviser to the EY Item Club, said the sales bounce-back 'masks a challenging backdrop' in the UK economy.
He said: 'Looking back over the last 12 months, the retail sector has seen a relatively modest performance, which is expected to continue through the rest of the year and into next.
'There are signs that consumers are becoming slightly more confident, but the retail sector will still have to contend with the effects of slowing wage growth, ongoing fiscal tightening, and some mortgagors still having to refinance onto higher interest rates.'