MNI DATA ANALYSIS: Jun UK Shop Sales Above 3 and 12-mo average

--BRC June Like-for-Like Sales Up 1.1% y/y; Total Sales Up 2.3%

     LONDON (MNI) - UK retail sales growth continued its recovery in June from a

record decline in April, largely attributed to the warm weather and the World

Cup leading shoppers to buy beers, barbeques and big screen TVs, the British

Retail Consortium (BRC) survey showed.

     June like-for-like sales rose 1.1% from June 2017, when they rose 1.2% y/y.

Furthermore, sales on a total basis of 2.3% was above the 3-month and 12-month

averages of 1.2% and 1.5% respectively.

     --WEATHER DOMINATED BOUNCE

     Warm weather in June, along-side the World Cup meant grocery sales

continued its strong run stemming from added enthusiasm for picnics and

barbeques. Food sales increased 0.3% on a like-for-like basis and 1.7% on a

total basis. Whilst below a 12-month total average growth of 3.7%, the average

did include April which was negatively distorted by the timing of Easter.

Fashion also saw an uplift but larger discretionary sectors such as home

improvement and furniture did not experience similar upward momentum. 

     Non-food store sales also improved with a tempering of the decrease in

growth. Over the three months to June, non-food retail sales decreased 0.2% on a

like-for-like basis and increased 0.8% on a total basis. This is higher than the

12-month total average decrease of 0.1% and the best 3-month average since

September. It also represented the second consecutive month of growth in

Non-Food. 

     --WORLD CUP BOOST APPARENT FOR JUNE

     Food and grocery sales grew strongly in June with the World Cup providing

conditions for strong food and grocery sales; especially beers, wines and

spirits. As Joanne Denney-Finch, Chief Executive at IGD notes "June was another

positive month for food and grocery, thanks largely to exceptional sales of

drinks in the final week due to hot weather and World Cup festivities," 

     Whilst there was good news in the food and grocery sales, other areas did

not fare so well. As Helen Dickinson, Chief Executive of the British Retail

Consortium, said "Beer, barbeques and big TVs lifted June's sales as warm

weather and world cup fever gripped the nation. However, with consumers

engrossed in the agony and ecstasy of each match, spending on many other items

fell. In the end June scored solid, but not sensational, sales."  

     Furthermore, the positive set of sales results is still in the backdrop of

structural changes that retailers need to be prepared. "The summer sunshine,

Wimbledon and the on-going World Cup provide a strong foundation for growth in

July, but retailers need to ensure that sales translate into profit. With the

structural changes the sector is experiencing, as well as increased cost, this

is becoming increasingly difficult to achieve." Paul Martin, UK Head of Retail,

KPMG said. 

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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