British retail sales rose by 3.1 per cent year-on-year in June, 2025, buoyed by hot weather that drove demand for summer goods, Reuters reported on Tuesday, citing the British Retail Consortium (BRC). This marks a recovery from May's 1.0 per cent increase and represents the second-strongest rise so far this year. BRC Chief Executive Helen Dickinson noted that soaring temperatures boosted sales of electric fans and sports equipment, aided by the start of the Wimbledon tennis tournament. June was England's hottest on record, with UK-wide temperatures the second-highest since records began in 1884. Supermarket spending rose by 4.1 per cent annually, outpacing the 2.2 per cent growth in non-food stores. However, the BRC cautioned that much of the increase was driven by inflation, particularly a 3.7 per cent rise in food prices – the highest since March 2024 – while non-food prices dropped by 1.2 per cent. Sarah Bradbury, head of the Institute of Grocery Distribution, said sales growth was "predominately driven by inflation with volumes under sustained pressure". Separate data from Barclays showed overall consumer spending slipped 0.1 per cent in June, pointing to continued caution among shoppers. Bright spots included furniture sales, sunscreen, and hay fever remedies. Barclays' Chief UK Economist Jack Meaning said limited GDP growth is expected for the rest of 2025, with a rebound likely next year as interest rates ease and economic confidence improves. Attribution: Reuters Subediting: M. S. Salama
