Sunshine boosts sales growth

Responding to the latest ONS Retail Sales Index figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“June’s sunshine gave retail sales growth a boost as customers readied themselves for the summer season, with products in areas such as fashion, skincare and books performing particularly well. Nonetheless, consumer confidence remains fragile, and with households feeling the pinch from high inflation and rising interest rates they held back on making big ticket purchases, especially in areas such as electricals.

“Retailers are hopeful that consumer confidence will improve over the coming months as inflation eases. Falling inflation rates are a clear sign that competition is bringing down prices wherever cost pressures ease. While retailers are doing their bit, Government has a role to play in bringing inflation down. The costly reforms to the packaging levy (Extended Producer Responsibility) and a new deposit return scheme could together add £4bn in costs to retailers, putting renewed pressure on prices. Government should reconsider the timelines for these interventions in order to not make the current challenging environment even more challenging for households and businesses.”