Better weather lifted sales of clothing and footwear last month to give the beleaguered high street a welcome boost and add to growth prospects.
The British Retail Consortium said like-for-like retail sales rose 1.4% in June when compared with last year, following a 1.8% gain in May, raising hopes that a recovery in consumer spending can provide extra fuel for the economy.
Higher temperatures and promotions combined to drive sales of clothes, shoes, DIY goods and garden furniture, as seasonal lines staged a delayed recovery, the BRC said.
Two consecutive months of rising sales are expected to see the retail sector contribute to economic growth in the second quarter, with analysts predicting that gross domestic product will rise by at least 0.5%.
Retailers are also hopeful the imminent arrival of the Duke and Duchess of Cambridge’s baby will give another boost to the high street as shoppers stock up on champagne and memorabilia.
The BRC said total sales were 2.9% higher in June, adding that real-terms growth was quickening at 2.3% over the past six months, compared with 1.5% during the last 12 months.
“Despite challenging economic conditions continuing, June saw another strong performance from the UK’s retailers, with very respectable overall growth across the categories,” said BRC director general Helen Dickinson.
“At this half-way point in the year we are able to see that sales are well ahead of the previous six-month period, confirmingthat the retail recovery is continuing.”
Clothing and footwear were the two strongest-performing categories as shoppers caught up on delayed spending. Audio, video and computing also fared well as retailers started their summer sales.
Hay-fever products were boosted by the warmer weather, although sun-care sales only rose at the end of the month.
Furniture and flooring sales also continued their positive momentum, and outdoor toys did well as sales of slides and paddling pools rose.
David McCorquodale, head of retail at KPMG, said the performance was all the more creditable given last year’s June sales earned a boost from the diamond jubilee.
“This is another respectable performance by UK retailers,” he said. “Sales are moving in the right direction, albeit hard-earned and promotion-driven.”
Food sales rose despite the tough comparison with a year earlier, with drinks and ice cream sales increasing as the weather improved. The earlier timing of Ramadan also helped stimulate sales, the BRC added.
Online sales were up 14.1% on a year earlier, strongly ahead of the 10.5% long-term average.
Textiles and home accessories were the worst-performing categories, however, and struggled against the spike caused by last year’s jubilee and shoppers’ increased spending on fashion.