UK retailers have recorded the worst month for sales in July since records began. Total sales increased by 0.3% in July compared to 1.6% in July last year. July saw record temperatures which would normally expect bigger sales of items that are summer clothes but the demand was not as big as normal.
Helen Dickinson, chief executive of the British Retail Consortium (BRC) said: “While retailers will welcome the return to growth, it has nonetheless been a punishing few months for the industry.
“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%.
“Whereas last year’s glorious sunshine and World Cup Finals led to strong consumer demand over the summer, this year has been weak in comparison, with both June and July showing the lowest sales on record for their respective months.”
Barclaycard processes nearly half of credit and debit card transactions, they said that British families were limiting their spending money on essential items. Sales of essential items such as spending in supermarkets and on petrol fell by 0.9%.
Esme Harwood, a director of Barclaycard, said: “Spending has remained relatively subdued over the past few months, with an underlying uncertainty about the wider economic and political landscape causing many to hold off making purchases on bigger ticket items.”
Job loss fears have increased to the highest in two years. This comes after many big companies are cutting jobs to try and save businesses financially.
