UK retail sales grew faster than expected in June, despite continued high inflation. Sales volumes were 0.7 per cent higher last month compared to May, which is a bigger increase than the 0.2 per cent that economists forecast.

This is according to the latest data from the Office for National Statistics (ONS), which also reported that non-food stores sales volumes rose by one per cent in June, following a fall of 0.5 per cent in May. The figures measure the amount bought, in volume, rather than the amount spent.

Department stores had a strong month with feedback from some retailers that Summer sales and increased footfall because of the good weather helped boost sales volumes.

Last month was the hottest June in Britain in modern records. And the latest BRC-Sensormatic IQ report showed that high street footfall increased from May as shoppers opted to enjoy the outdoors. Compared to June last year, however, total UK footfall did decrease by 1.9 per cent.

Responding to the ONS figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said that June’s sunshine gave retail sales growth a boost as customers readied themselves for Summer…

“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,” she said.

Elsewhere, online spending values fell by 0.5 per cent, mainly due to monthly falls in clothing and food stores, the ONS said.

The proportion of retail sales online remains above pre-pandemic levels, at 26 per cent in June 2023. Online department store sales jumped up 1.7 per cent against May, a hefty increase of 5.8 per cent compared to June last year.

Ms Dickinson added: “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.”