British retailers suffer worst July sales growth since records began

UK retailers have recorded the worst July of sales growth since records began in 1995, according to the British Retail Consortium (BRC).

Data compiled by accountancy firm KPMG showed that total sales grew by 0.3 percent last month, compared to a rise of 1.6 percent in the same month last year. On a like-for-like basis, retailers saw a 0.1 percent rise from July last year.

The figures are another reminder of shoppers' cautiousness facing prolonged Brexit uncertainty. “While retailers will welcome the return to growth, it has nonetheless been a punishing few months for retailers. The combination of slow real wage growth and Brexit uncertainty has left consumer spending languishing with the 12-month average total sales falling to a new low of just 0.5 percent,” Helen Dickinson, chief executive of BRC, said in a statement.

While last year’s hot summer and World Cup Finals drove consumer demand, this year failed to draw the same success, resulting in both June and July showing the lowest sales on record for their respective months.

Dickinson continued: “The challenging retail environment is taking its toll on many high street brands who must contend with rising import costs, a multitude of public policy costs, and ever higher business rates. A coherent strategy for retail is needed. The Government should freeze future business rates rises and fix the appeals system before embarking on a wholesale reform of this broken tax system.”

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