UK: Clothing drags on retail sales growth in June
The first fall in demand for clothing since the start of the year weighed on UK retail sales growth in June, according to new figures, although the pace is expected to pick up again next month.
The latest monthly Distributive Trades Survey from the Confederation of British Industry (CBI) showed June sales at clothing retailers were down for the first time since January.
Overall high street sales growth also slowed markedly, with 29% of retailers saying sales volumes were up in June on a year ago, whilst 24% saying they were down - giving a rounded balance of +4%. This was below expectations (+29%) and compares with a balance of +16% in May.
Reported sales volumes in June grew in footwear & leather (+100%), but fell in clothing (-17%).
"After a recent improved run for the high street, a fall in clothing and food sales has contributed to a disappointing month, said Barry Williams, chair of the CBI Distributive Trades Survey Panel and Asda SVP and chief merchandising officer for food.
"Whilst it seems that hopes that retail spending would be boosted by a strong performance by England at the World Cup were as over ambitious as aspirations for a good performance, I'm reassured that consumer confidence is still on the up, as household budgets are being bolstered by falling inflation.
"However, whilst discretionary income is still on the rise, slow wage growth continues to weigh on how much consumers are willing to go out and spend."
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