UK Retail Sales Up in Jun

UK JUN RETAIL SALES +0.5% M/M; +9.7% Y/Y

UK JUN RETAIL SALES EX-FUEL +0.3% M/M; +7.4% Y/Y

UK MAY TOTAL SALES REVISED AT -1.3% M/M

UK JUN RETAIL SALES DEFLATOR +3.1% Y/Y; EX-FUEL +1.9% Y/Y

• UK retail sales increased by 0.5% in Jun, in contrast to markets looking for a flat reading (BBG: 0.0%). This follows a decrease in May which was driven by falling food sales. Nevertheless, sales are 9.5% above the pre-pandemic level.
• Annual sales registered at 9.7%, after rising sharply by 24.6 and coming in better than markets expected (BBG: 9.2%).
• Food and drink sales provided the largest upward contribution, rising by 4.2%, which is the highest level since Mar 2020. The ONS noted that sales were boosted by football fans enjoying the Euros.
• Non-food stores and particularly household goods stores declined in Jun, down by 1.7% and 10.9%, respectively, while non-store retailing fell for the second month in a row (-3.7%).
• Fuel sales rose by 2.3% in Jun, recording the fourth consecutive increase as people increased the amount of travel. However, the level of fuel sales remains 2.1% below the pre-pandemic level, the ONS noted.
• The proportion of online sales eased further in Jun to 26,7%, which is the lowest level since Mar 2020.