Despite years of slumped spending activity, recent cultural celebrations such as the Royal Wedding, and now the FA World Cup, have given the sector an uplift. The warmer weather has also improved sentiment, with consumers flocking to supermarkets and garden centres to enhance the enjoyment of outdoor recreation. While the positive fallout from the Royal Wedding faded fast, the improved economy could suggest this time it will stick.
A new report from the British Retail Consortium has revealed that retail spending rose by 2.3 per cent in June compared with the same month last year, after receiving a boost from “beers, barbeques and big TVs” because of the World Cup. The positive feeling inspired by England’s success in the football games has no doubt improved enthusiasm across the consumer and business population, with consumers more likely to spend when they’re in a celebratory mood.
If the UK is going to sustain this positive activity, its businesses need to inspire more energetic consumer behaviour. Investing in new equipment, technology and new services could achieve this. At the Credit Protection Association, our debt recovery services free up cash flow and award our Members with the financial power to attract new customers and push back competition.
The upbeat figures for June will come as welcome relief to retailers. In the first four months of the year, several established high street names issued profit warnings, closed stores or went into administration.
The positive behaviour could even hang around, with official figures back in May showed retail sales rising by 1.3 per cent, after a 1.8 per cent bounce in April.
The figures were especially impressive as sales have not risen by more than 1 per cent for two consecutive months since late in 2014.
Separate data from Barclaycard also showed that spending on non-essential items had grown by 5.5 per cent in June, the best performance since October 2016 and up from 5.1 per cent in May, as “consumers continued to prioritise making the most of the summer’s experiences”.