Retail sales in the UK climbed by 3.1 per cent year‑on‑year in June, according to the latest BRC‑KPMG Retail Sales Monitor.
This marks a sharp turnaround from May’s 0.2 per cent decline and suggests that soaring temperatures and summer events helped revive consumer spending.
Hot weather drives sales of fans and sports gear
The BRC chief, Helen Dickinson, noted that “soaring temperatures increased sales of electric fans while sports and leisure equipment was boosted by both the weather and the start of Wimbledon”.
In June—the hottest since records began in 1884—demand for summer essentials was strong. Non‑food stores recorded 2.2 per cent growth, reversing a fall of 1.9 per cent a year earlier.
In‑store and online non‑food purchases rose in step, with online at 2.3 per cent and in‑store matching 2.2 per cent.
Food inflation boosts supermarket sales
Supermarket sales led the way, rising by around 4.1 per cent year‑on‑year . The BRC attributed much of this growth to food price inflation, which reached 3.7 per cent in June—the steepest increase since March 2024.
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By GlobalDataRetailers also linked the rise to hot weather impacting harvests, pushing up the cost of fruit and vegetables.
Signs of consumer caution persist
Although UK retail sales warmed up in June, broader spending remained cautious. Barclays data showed overall card transactions fell by 0.1 per cent year‑on‑year, with essential outgoings down 2.1 per cent and non‑essentials up just 0.8 per cent.
Barclays Chief UK Economist Jack Meaning noted that while non‑essential and leisure spending edged higher—fuelled by summer events—households were still “maintaining savings buffers” amid economic uncertainty.
The Institute of Grocery Distribution also observed that “sales growth continues to be predominately driven by inflation with volumes under sustained pressure”.
What this means for the retail outlook
June’s rebound shows how summer heat and seasonal events can stimulate UK retail sales, especially for categories like fans, summer clothing, sports gear, and food. Yet underlying pressures—rising living costs, tax hikes, and geopolitical worries—continue to shape consumer behaviour.
Analysts warn that while growth may continue into the summer, it could remain modest until inflation eases and confidence improves.
As the UK heads into July and August, retailers will watch whether the momentum from strong June performance and Wimbledon carries through, or whether households shift back to cautious spending amid persistent economic headwinds.
