Retail sales in Great Britain fall despite heatwave increasing food and drink demand
Source: Guardian Econ ↗
Retail sales across Great Britain weakened last month despite the men’s football World Cup and record temperatures boosting the demand for food and drink. The Office for National Statistics said the volume of goods sold in stores and online fell 0.5% in July. That is down from 0.7% rise in June – revised down from initial estimates of 1% – and a 1.3% rise in May. Non-food stores took the biggest tumble, falling 1.3%, on the back of a drop in clothes shopping, after retailers brought forward cut-price sales into June while heatwaves in July resulted in more people staying home than hitting the high street. Sandra Prince, the head of consumer at Lloyds, said: “Hotter days could have shifted footfall and spending online or towards retail parks.
For retailers, as the summer peak slows down, attention is now turning to the opportunities the autumn could bring to keep consumers engaged.” Demand for furniture also took a dive, with fewer households looking to change decor during the extreme heat, while department stores suffered because of a drop in available stock. Some retailers had warned of lengthier delivery times during recent heatwaves. Food and drink sales were a rare bright spot, however, as hot and sunny weather and excitement around World Cup games boosted demand. However, the gains could have been higher had it not been for pubs and sports bars – which count as hospitality rather than retail in official statistics – luring punters to their screens to watch big matches. The British Beer & Pub Association said last month that late opening hours and England’s progress to the semi-finals gave a big boost to the industry, with pubs pouring an extra 30m pints than normal over the course of the tournament.
That produced an extra £150m in added sales for its members. Jacqui Baker, a partner and the head of retail at the consultancy RSM UK, said: “Retail was not a World Cup winner, with many opting to cheer on England from the pub and prioritising their summer getaway, boosting hospitality and travel rather than retail sales. “Consumers splashed out on fans and food for barbeques due to the heatwave, with many avoiding soaring temperatures on the high street.”
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶Currency traders elsewhere may start pricing in the fallout within hours.
- ▶Global boardrooms tend to take notice when this kind of news surfaces.
🏙️Local Economymedium impact
What this means for you
- ▶Match days can lift takings for nearby businesses.
- ▶Ticket resales and travel bookings tend to spike around events like this.
🏦Rates & Bankslow impact
What this means for you
- ▶Watching how currency markets react can hint at where rates head next.
- ▶Borrowing costs may hold steady for now, but they can turn on fresh news.
❤️Healthmedium impact
What this means for you
- ▶Post-match adrenaline usually fades quickly, win or lose.
- ▶The highs and lows of a big match can affect sleep and stress.
💷Wealthlow impact
What this means for you
- ▶Your overall wealth picture is unlikely to be defined by a single story like this.
- ▶It's rarely wise to make big financial decisions purely on breaking news.
🏠Housinglow impact
What this means for you
- ▶First-time buyers watching the market closely might see little change in the short term.
- ▶Regional differences mean this may be felt unevenly across the property market.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.