Retail sales fall sharply in July
UK retail sales fell by -1.2%, as some of the wettest July weather in history and the impact of higher interest rates put customers off the high street.
Sales had been expected to decline, by 0.5%, after a strong June in which sales climbed, due to the heavy rainfall during the month. But the fall was much worse than expected, suggesting that higher interest rates and continuing inflation are having a notable effect as well.
London Skyline
/ AFP via Getty ImagesJosh Graham, Co-Founder and Chief Marketing Officer at Airtime Rewards, said: “Today’s retail sales figures show that shoppers are prioritising financial resilience over spending, as rising interest rates prompt them to tighten their purse strings. Add to this the wet weather which dampened demand for summer clothing, and it’s hardly surprising we’ve seen retail figures slump. Our own data shows that spending in July was down 10%, with bars and offline clothing impacted most notably.
“Stubbornly high inflation and rising interest rates are testing consumers’ ability to spend, and retailers must brace themselves for scarcer spending. Having a clear value proposition that focuses on the wants and needs of customers, as well as a multi-channel approach, will be critical to attracting and retaining shoppers.”
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