Retail sales in Great Britain fall despite heatwave increasing food and drink demand

Volume of goods sold in stores and online dropped 0.5% in July, ONS says

Retail sales across Great Britain weakened last month despite the men’s football World Cup and record temperatures boosting the demand for food and drink.

The Office for National Statistics said the volume of goods sold in stores and online fell 0.5% in July. That is down from 0.7% rise in June – revised down from initial estimates of 1% – and a 1.3% rise in May.

Non-food stores took the biggest tumble, falling 1.3%, on the back of a drop in clothes shopping, after retailers brought forward cut-price sales into June while heatwaves in July resulted in more people staying home than hitting the high street.

Sandra Prince, the head of consumer at Lloyds, said: “Hotter days could have shifted footfall and spending online or towards retail parks. For retailers, as the summer peak slows down, attention is now turning to the opportunities the autumn could bring to keep consumers engaged.”

Demand for furniture also took a dive, with fewer households looking to change decor during the extreme heat, while department stores suffered because of a drop in available stock. Some retailers had warned of lengthier delivery times during recent heatwaves.

Food and drink sales were a rare bright spot, however, as hot and sunny weather and excitement around World Cup games boosted demand.

However, the gains could have been higher had it not been for pubs and sports bars – which count as hospitality rather than retail in official statistics – luring punters to their screens to watch big matches.

The British Beer & Pub Association said last month that late opening hours and England’s progress to the semi-finals gave a big boost to the industry, with pubs pouring an extra 30m pints than normal over the course of the tournament. That produced an extra £150m in added sales for its members.

Jacqui Baker, a partner and the head of retail at the consultancy RSM UK, said: “Retail was not a World Cup winner, with many opting to cheer on England from the pub and prioritising their summer getaway, boosting hospitality and travel rather than retail sales.

“Consumers splashed out on fans and food for barbeques due to the heatwave, with many avoiding soaring temperatures on the high street.”