Retail sales fell 0.1% in June 2022, less than experts expected but continuing a downward trajectory that reflects an economy struggling with record food and fuel prices.
Non-food stores such as clothes and household goods, which fell by 4.7% and 3.7% respectively, were hit particularly hard, according to figures from the Office for National Statistics.
Some hoped the Queen’s platinum jubilee would give the shops a big boost.
Where the anniversary had a positive impact was in food, where sales volumes increased by 3.1%, with retailers confirming that higher sales were due to the festivities.
But it was the only sector that saw an increase.
Retailers said they had seen a fall in volumes sold in recent months due to higher food prices and the cost of living crisis, the ONS said.
And in June, growth in food sales was clearly offset by a drop in fuel sales due to extremely high prices.
In fact, the price of petrol and diesel has become such a drag on household spending that if motor fuel is excluded from the ONS sales figures for June, sales volumes actually increased by 0.4% compared to the previous month.
But even so, fuel sales fell 4.3 percent as more consumers avoided the gas station.
“Once rising prices are taken into account, retail sales fell slightly in June and although they remain above their pre-pandemic level, the wider trend is down,” said Heather Bovill, ONS deputy director of research and economic indicators .
After a dip in May, food sales were up due to jubilee celebrations, Ms Bovill said.
“Apparel purchases fell along with household goods, with retailers suggesting consumers cut back on higher prices and affordability concerns,” she added.
Although sales volumes rose 2.2% over their pre-coronavirus levels since February 2020, they were down from June 2021 volumes, when buyers unleashed pent-up demand after the lockdown ended.
“The contraction in the cost of living caused by record inflation continues to damage consumer confidence and stifle household spending,” said Helen Dickinson, chief executive of the British Retail Consortium (BRC).
“Discretionary spending and especially larger purchases were delayed as consumers became more concerned about the future.”
The latest industry figures from the BRC showed retail sales volumes fell at a rate “not seen since the depths of the pandemic”, marking the third consecutive monthly decline as inflation eats away at household purchasing power.
The British Retail Consortium (BRC) said the value of total sales was 1% lower in June than a year ago.
This followed a 1.1% decline in May.
Comparable sales, which adjust for changes in floor space, fell 1.3%.
However, the figures are not adjusted for inflation, which the BRC said was 3.1% among its members – the highest since 2008 as the cost of living crisis gathers pace.
The official consumer price index, which measures inflation faced by consumers, is at a 40-year high of 9.1% – driven mostly by energy and fuel costs.
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