UK retail sales slide in June - ONS

(Sharecast News) - UK retail sales fell by more than expected in June, official data showed on Friday, partially reversing May's jump. According to the Office for National Statistics, retail sales volumes fell 1.2% last month, compared to a 2.9% rise in May.

Most analysts had pencilled in a far smaller decline, of around 0.4%.

The ONS said that with the exception of petrol stations, sales had fallen across all the main shop types during the month.

Department stores was one of the biggest contributors to the decline, with a 3.1% decrease, along with furniture and clothing shops.

Across the second quarter, sales volumes fell by 0.1% or by 0.2% year-on-year.

The biggest falls in the three months to June-end were seen in supermarket and clothing stores, although that was partially offset by growth in online shopping.

In the 12 months to June, volumes fell 0.2%. The ONS said sales were 1.3% below their pre-pandemic level, in February 2020.

Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said: "June has been a washout for retail sales, with retailers yet to sustain two consecutive months of sales growth this year.

"The poor weather in June saw disappointing sales of summer goods across food and clothing. This comes despite significant discounting and deflation in fashion retail, with volumes remaining stagnant."