Online sales surged to their highest share of retail spending in five years last month, as a blistering June heatwave and World Cup spending drove shoppers indoors to their keyboards.
The Office for National Statistics said the volume of retail sales in Great Britain rose 1% month on month in June, defying analysts’ forecasts of a 0.3% decline. Year on year, sales climbed 4.2% in June, almost double the 2.3% expected.
“Online retail sales hit highest share since spring 2021 as heatwave and World Cup fuel 1% monthly rise in June.”
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 another bumper month, with sales soaring 4.4% in June, although down from 6.1% growth the previous month. Clothing and footwear retailers also had a strong month, with sales rising 1.9% from May – the biggest monthly increase since September. Sales at other non-food stores, such as computer and telecoms retailers, rose 1.8%.
But the heatwave that triggered demand for air conditioners and outdoor goods also dealt a blow to department stores, which reported a 1.7% monthly decline in sales after a 2.5% rise in May when shoppers bought fans and paddling pools. Household goods retailers also saw weaker sales, down 0.6% month on month.
The overall retail sales growth of 0.6% in the three months to the end of June, compared with the previous quarter, was driven by two months of hot weather after a revised 0.7% fall in April.
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.”