Deloitte comments on ONS retail sales figures

Commenting on today’s ONS retail sales figures, Oliver Vernon-Harcourt, head of retail at Deloitte, said:

“Another heatwave and World Cup fever boosted retail sales in June, despite some speculation that volumes would cool slightly. The hottest June on record for England, as well as the start of seasonal sporting and cultural events, encouraged spending across summer-related categories. Consumers refreshed wardrobes and spent more on warm weather goods to prepare for outdoor gatherings and watch parties, while the heat diverted many shoppers online, providing a generous boost to non-store retailing.

“Despite ongoing concerns around the cost of living, our UK financial wellbeing index* increased to 101.5 in June, up from 98.1 in May, and an improvement from 97.3 a year ago, driven by a significant improvement in sentiment around big-ticket purchases. Many remain willing to spend when given the right reasons, and both value and convenience continue to be key drivers of spending. A summer of holidays and festivals, paired with improving consumer confidence, could help support demand across the next couple of months, particularly in discretionary categories.”

END

Notes to editors

*Deloitte’s financial well-being index (FWBI) measures changes in the percentage of survey respondents who feel neutral, positive, or very positive for each of the following six dimensions of financial health. Higher index values indicate stronger financial well-being. The index includes:

• Confidence in the ability to make upcoming payments
• Comfort with level of savings
• Income relative to spending
• Delays in making large purchases
• Assessment of current financial situation relative to the prior year
• Expectations of financial situation for the year ahead