Online sales hit their highest share of retail spending in five years last month as record heat fuelled demand for air conditioners, outdoor products and clothing, according to official figures that smashed analysts’ expectations.
The Office for National Statistics (ONS) said the volume of retail sales across Great Britain rose 1% month on month in June, defying forecasts of a 0.3% decline. The scorching weather and World Cup spending drove year-on-year sales up 4.2% – almost double the 2.3% predicted by analysts.
“Online retail sales hit five-year high in June as heatwave and World Cup spending beat forecasts.”
Hannah Finselbach, a senior statistician at the ONS, said: “With internet retailers faring well, the proportion of online sales has risen to its highest since spring 2021, when coronavirus restrictions were ending.” Non-store retailers – primarily online businesses – enjoyed a bumper month, with sales soaring 4.4% in June, although that was down from 6.1% growth recorded in May.
The heatwave pushed shoppers to invest in air conditioners and outdoor goods, but it was clothing and footwear retailers that also had a strong month, with sales rising 1.9% from May – the biggest monthly rise since September. Sales at other non-food stores – excluding clothing, household goods or department stores – rose 1.8% month on month, driven by computer and telecoms retailers.
Department stores, however, reported a 1.7% monthly decline in sales after a 2.5% rise in May, when shoppers bought fans and paddling pools during the hot weather. Household goods retailers also saw weaker sales, down 0.6% month on month.
Samuel Edwards, head of client portfolio management at the financial services firm Ebury, said: “Retailers scored an early summer goal in June, with retail sales outperforming expectations as warm weather, promotions and World Cup fever helped unlock consumer spending.” After a revised 0.7% monthly fall in April, two months of hot weather helped drive overall retail sales growth of 0.6% in the three months to the end of June, compared with the previous quarter. The shift online appears entrenched, but whether the high street can claw back lost ground remains uncertain.