Retail sales were boosted by sunshine and sport last month – but the High Street is still grappling with costs imposed by Labour.
Total sales rose 2.5 per cent in July compared with the same month a year ago, according to the British Retail Consortium (BRC).
England star Chloe Kelly (pictured) and her Lionesses teammates’ victorious campaign in the women’s Euros boosted demand.
Sports fans glued to the TV over the month helped drive a 3.9 per cent in food sales, though the increase was partly the result of inflation pushing up prices.
Retailers are grappling with extra annual costs piled on to them by Chancellor Rachel Reeves.
BRC boss Helen Dickinson said: ‘With sales growth at these levels, it is barely touching the sides of covering the £7billion of new costs imposed on retailers at the last budget
England star Chloe Kelly and her Lionesses teammates’ victorious campaign in the women’s Euros boosted demand.
Many Britsh retailers, including supermarket giants like Tesco, Sainsbury’s and Aldi, have been making job cuts and slowing hiring in efforts to manage growing costs.
It follows the introduction of higher employer national insurance contributions and a hike to the national living wage last year.
This has happened at a time when food costs are rising and consumer confidence is weak.
David Hughes, equity research analyst at Shore Capital, said July can be ‘deemed as sound from a top-line perspective’ for UK retailer, but acknowledged continued pressure on the sector.
He said: ‘The largely UK Government inspired cost growth means that balancing sales and margin progression is far from a walk in the park.
‘Food remains the prime source of sales momentum, inflation fuelled, but non-food store sales were sound, online participation weak.
‘We continue to keep a close eye on the UK labour and housing markets as drivers for retail activity, one way or another.
‘The hot August weather and base rate cut may be sources of support, but we question if they will be enough to offset the spectre of Autumn tax rises.’
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