Retail sales edged down in June as drivers cut back on record-priced fuel, with consumers reducing shopping less than expected, data showed, though the trend remained weak as households struggle with surging inflation.
Volumes fell by a smaller-than-expected 0.1% from May, the Office for National Statistics said on Friday
After taking account of rising prices, retail sales fell slightly in June and although they remain above their pre-pandemic level, the broader trend is one of decline,” Heather Bovill, an ONS statistician, said.
Excluding automotive fuel, volumes in June rose by 0.4% on the month, compared with a poll forecast for a fall of 0.4%.
Automotive fuel sales volumes fell by 4.3%, the biggest drop since October last year when a shortage of truck drivers triggered a wave of panic buying of petrol and diesel.
Helen Dickinson, Chief Executive of the British Retail Consortium, said:
“The cost of living crunch caused by record inflation continue to damage consumer confidence and stifle household spending. Discretionary spending and particularly bigger purchases were put off as consumers become increasingly concerned about the future. As a result, furniture sales and white goods were particularly hard hit, while food sales held up a little better.
“Retailers are squeezed between higher costs and weaker demand, resulting in the most challenging trading period since the start of the pandemic. Retailers are playing their part to help households by absorbing as many of these costs as possible, expanding their value ranges, and offering discounts for some vulnerable groups. With the government consultation on the design of the Transitional Relief scheme for the 2023 ending today, there is a clear opportunity to remove some of the burden on retailers that limits their ability to absorb more of the incoming costs.”
