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July a washout for retailers

ended 18. August 2023

The latest retail sales data has just been published and it proved a washout, partly due to the weather and partly due to the ongoing cost of living crisis. The full report is available >> here <<. Key points below. How were things for you in July as a bricks and mortar, online or hybrid retailer, how has August been and how optimistic are you about the rest of 2023?

  • Retail sales volumes are estimated to have fallen by 1.2% in July 2023 following a rise of 0.6% in June 2023 (revised from an increase of 0.7%).
  • Food stores sales volumes fell by 2.6% in July 2023, with supermarkets reporting that the wet weather reduced clothing sales, although food sales also fell back; retailers indicated that the increased cost of living and food prices continued to affect sales volumes.
  • Non-food stores sales volumes fell by 1.7% in July 2023, following a rise of 0.6% in June 2023; retailers reported that the fall over the month was because of poor weather reducing footfall.
  • Automotive fuel stores sales volumes rose by 0.7% in July 2023, following a fall of 0.6% in June 2023.
  • Non-store retailing sales volumes rose by 2.8% in July 2023; online retailers suggested that a range of promotions boosted sales.
  • Shoppers switching to online shopping because of poor weather and increased promotions led to 27.4% of retail sales taking place online in July 2023, up from 26.0% in June 2023; this is the highest proportion since February 2022 (28.0%).

3 responses from the Newspage community

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Jo Spolton
Founder at Rumage
July saw rising numbers of users who were searching for second-hand items arriving at Rumage. Our organic traffic increased by 29% and retention has gone up by 18%. As the cost of living crisis continues, items available for free online remain popular and so far in August we have seen an uptick in activity on our "for free" partner sites such as Freegle and Trash Nothing, with searches for back-to-school items such as winter coats and football boots becoming prominent. We are expecting the fourth quarter to be big for us as people plan how to spend a limited budget for the Christmas period. Preloved presents such as books and game consoles are popular on the resale marketplace with refurbished tech reaching a seasonal high towards the end of the year.
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Clive Read
Owner at Goldmanread
The rainy summer has not only had an impact on the retail market but seems to be dampening down the housing market as well. Buyers are thin on the ground whilst valuations have come under increasing pressure from further expected rate rises. At Goldmanread we have noticed a marked uptick in down valuations, some by as much as 10-20% when it comes to remortgages. The message has clearly got out that lenders expect a rocky time for the rest of 2023 and beyond especially as the inflation outlook remains cloudy. The question is whether sellers are going to adjust to this new pricing reality or go under cover when it comes to valuations.
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Racheal Straughan
Founder at Mayfli
It’s desperate times for retailers right now. In fact, many are way beyond desperation in the current economic climate. Many small independent retailers are giving up on their hopes and dreams. They are closing their doors, switching off their online shops for good and moving into full-time jobs. Even big brand names are struggling to maintain their presence on the high streets. It begs the question of how long independent businesses will stay on our high streets. While online sales have seen an increase, it is disheartening to see that only certain platforms are reaping the benefits. I understand that any sale is considered a good one, but relying solely on platforms such as Amazon and Etsy may inadvertently add more strain to businesses. The high fees associated with these platforms, coupled with the extended holding periods for payment, up to 30 or even 90 days, can further exacerbate the challenges small retailers are already facing.