Retail sales in June were boosted by the World Cup, with online sales surging as a result of England and Scotland’s participation in the tournament. The World Cup combined with the record-breaking heatwave prompted shoppers to switch up their shopping trips, with people favouring frequent “top up” shops over the big family basket.
Retail sales were up 1.9% during the five weeks between 31 May and 4 July, according to the BRC-KPMG retail sales monitor. Food sales grew 2.8% during the same period, against growth of 4.8% the year before, with some of the slowdown due to the unexpected but welcome fall in the food inflation rate.
Hot temperatures caused many to cut down their trips to the shop, instead favouring doing their shopping online, where penetration grew to 39%, up from 37.9% the previous year.
Related: Post Office Launches New Advice Service
IGD CEO Sarah Bradbury said, “June’s record-breaking heat, food price inflation easing slightly and the start of the World Cup gave retailers a welcome boost, encouraging more frequent top-up shops.”
Demand for electric fans and paddling pools in particular boosted non-food sales, which grew by 5.1%, as shoppers sought to stay cool.
Asda’s online sales were boosted by 30% as a result of half time and hydration breaks, the supermarket said.
Related: A Closer Look At Labelling & Packaging
While the World Cup and warm weather have provided a boost to retail sales, there are concerns that ongoing political uncertainty and the impact of the Middle East conflict could weigh on consumer confidence in the future. IGD’s Bradbury warned that these factors may start to filter through to food prices, which could have a negative impact on sales.
Retailers are anticipating a further boost from England’s continued participation in the World Cup ahead of the semi-final on 15 July. “With both the warm weather and football tournament continuing this month, consumer confidence could receive a further uplift,” IGD’s Bradbury said. ”However, looking further ahead, ongoing political uncertainty and the impact of the Middle East conflict starting to filter through to food prices, may weigh on confidence once again,” she warned.
