LONDON: British shoppers are retreating from the heat wave, prioritising small treats and cutting back elsewhere as consumer boost shows signs of fading.
The value of retail sales increased an annual 1.3%, half the pace recorded a year earlier and slower than the 12-month average, the British Retail Consortium said in a report published yesterday.
England’s World Cup run lifted food sales, while retailers reported strong demand for affordable clothing and indulgences like beauty and fashion jewellery.
However, non-food sales fell 0.7%, the first decline since April, as shoppers postponed big-ticket purchases like furniture and electronics.
The slowdown injects a note of caution after recent reports pointing to a consumer recovery driven by slower inflation, football and sunny weather.
“While shoppers are feeling more positive than earlier in the year, many households remain mindful of their budgets, meaning value continues to play a central role in purchasing decisions,” said Sarah Bradbury, chief executive officer at the Institute of Grocery Distribution.
The Iran war and hot weather raise the risk of “higher food costs and renewed pressure on household budgets as we move into the autumn”. The cost-of-living is at the heart of Prime Minister Andy Burnham’s agenda. — Bloomberg
