Retail sales fall as inflation hits consumers
15 Jul 2022
UK retail sales are declining at a pace not seen since the worst months of the pandemic, according to the latest data from the British Retail Consortium (BRC).
Analysis from the BRC shows sales decreased by 1% last month, compared to an increase of 10.4% in June 2021.
UK households are facing the tightest squeeze since the 1970s after inflation hit a 40-year high of 9.1% in May, with food and drink prices up 8.6%.
Discretionary purchases were hit hard, especially white goods and homeware, according to the research, while consumers also traded down to cheaper brands in food and non-food alike.
Helen Dickinson, Chief Executive of the BRC, said: 'Sales volumes are falling to a rate not seen since the depths of the pandemic, as inflation continues to bite and households cut back spending.
'While the jubilee weekend gave food sales a temporary boost and fashion sales benefited from the summer holiday and wedding season, this was not enough to counter the substantial slowdown in consumer spending.'