Britain’s high streets experienced a disappointing June, with consumers described as “incredibly cautious” amidst rising job losses and volatile geopolitics, according to new figures.
Overall sales saw a modest 0.6 per cent year-on-year increase, while online sales surged by 4.3 per cent as shoppers adapted their behaviour, partly influenced by warmer temperatures.
The latest High Street Sales Tracker from accountancy and business advisory firm BDO revealed the disappointing in-store performance, underscoring the high street’s continued struggle to attract shoppers.
This was particularly evident in the fashion sector, where online sales jumped by 10 per cent in June compared with a 0.2 per cent decline on the high street.
This marks the sixth consecutive month that in-store sales growth has lagged behind the rate of inflation, indicating a significant drop in sales volumes across the first half of the year.
Data from the CBI also suggests that this is the ninth consecutive month that overall sales volumes have fallen, reflecting the ongoing challenge the retail sector faces in attracting consumer spending.
Sophie Michael, head of retail and wholesale at BDO, said: “Consumer spending continues to be challenged, with little optimism for retailers.
“We know that consumers are being incredibly cautious when it comes to discretionary spend, given the significant noise around rising job losses and volatility in the geopolitical landscape.
“There is also a growing gap between the performance of physical stores and online retail.
“Perhaps this is because online retailers have greater agility to adjust their inventory and promotional material to quickly align to consumer preferences, such as promoting summer outfits in extreme high temperatures and pivoting to waterproofs when the rain arrives.”
