Heatwave boosts food sales but non-food struggles in July’s retail landscape
- Retail sales growth slowed to 0.5% in July on a like-for-like basis.
- Non-food product sales declined by 2.5% over the past year.
- Food sales experienced their best month in five years, driven by hot weather and events like the World Cup.
- Rising business rates are putting additional pressure on retailers.
- Experts suggest that retailers need to adapt and improve efficiency to thrive.
In July, total retail sales growth experienced a slowdown, with only a 0.5% increase on a like-for-like basis, according to the latest BRC-KPMG Retail Sales Monitor. The report highlights that non-food product sales faced challenges, as the heatwave deterred shoppers from browsing for seasonal items. Over the past year, in-store sales of non-food products have dropped by 2.5%, coinciding with a nearly 3% rise in business rates. However, the soaring temperatures led to a surge in food sales, marking the best month in five years. Joanne Denney-Finch, CEO of the IGD, noted that July’s food and grocery sales saw the highest year-on-year growth since July 2013, with beverages performing particularly well due to the World Cup and the heat. BRC CEO Helen Dickinson pointed out that while weather influences spending patterns, the overall trend growth remains low compared to historical standards. Physical stores are facing significant challenges from rising costs and changing consumer behaviors, which may lead to fewer shops in the future. To revitalize high streets, Dickinson emphasized the need to halt the increase in business rates. Paul Martin, head of retail at KPMG, added that improving efficiency and adapting to the evolving retail landscape is crucial for retailers, especially in light of recent interest rate hikes.
Factuality Level: 8
Factuality Justification: The article provides accurate information from reliable sources (BRC-KPMG Retail Sales Monitor) and quotes experts in the field. It presents data on retail sales growth and offers insights into consumer behavior during a specific period of time. However, it could be improved by providing more context about the business rates issue and offering more diverse perspectives.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of weather on retail sales, specifically focusing on food and non-food products. It includes quotes from experts in the field to support its claims and discusses the long-term challenges faced by retailers. However, it could benefit from more analysis or discussion of potential solutions for these challenges.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the impact of weather on retail sales growth and the effect of business rates on retailers, which can affect companies’ financial performance and stock prices in the retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
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