Big Fall in Retail Sales in July Due to Wet Weather

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Summary:

  • Retail sales in July experienced a significant decline of 1.2%, worse than the anticipated 0.5% contraction.
  • The Office for National Statistics attributes the decline to the exceptionally wet weather, marking July 2023 as the wettest July since 2009.
  • Department stores, clothing shops, and supermarkets were among the hardest-hit sectors, with supermarkets showing the most pronounced decline in sales.
  • Online shopping defied the trend, posting a 4.4% year-on-year increase and accounting for 27.4% of total retail sales, the highest proportion in months.


Disappointing news from the high street as retail sales experienced a significant drop in July, with a 1.2% decline in sales volumes, worse than the expected 0.5% contraction. The Office for National Statistics (ONS) attributes the decline to the exceptionally wet weather during the month.


Weather Takes the Blame


The ONS reports that July 2023 was the wettest July since 2009, ranking as the sixth wettest July in records dating back to 1836. This extreme weather condition impacted consumer spending, particularly in department stores, clothing shops, and supermarkets.

Supermarkets Hit the Hardest


Contrary to seasonal expectations, supermarkets experienced the worst decline in business during a time when picnics and outdoor activities are popular. The ONS points out that the weather-related slowdown likely contributed to this unexpected downturn.

Online Shopping Bucks the Trend


Despite the overall slump in retail sales, online shopping saw a positive trend. Online sales increased by 4.4% year on year, accounting for 27.4% of total retail sales in July, the highest proportion since February of the previous year. Online retailers managed to fare better compared to traditional brick-and-mortar stores.


While online retailers managed to maintain a positive trajectory in July's challenging retail landscape, the overall market took a hit due to the unusually wet weather. The impact of ongoing economic factors, such as the cost of living crisis and recent interest rate hikes, remains a point of debate for experts.

Location: London, UK

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