Furniture retail sales decreased during July on last month and were also down against an annual comparison.
According to the latest data from the Office for National Statistics, furniture and lighting retail sales fell 22% to £1.04bn from £1.34bn in June. Compared to the previous year, sales were down 18% from £1.27bn.
Floorcovering retail sales decreased month-on-month, down by 9.8% to £241.7m from £268.1m. Compared to the same time last year, sales rose by 7.2% from £225.3m.
Retail sales volumes (quantity bought) are estimated to have risen by 0.5% in July 2024, following a fall of 0.9% in June 2024 (revised up from a 1.2% fall). As for the value (amount spent), this was down 18% month-on-month to £40bn.
Non-food stores sales volumes, the total of department, clothing, household, and other non-food stores, rose by 1.4% in July 2024. This follows a fall of 1.9% in June 2024. Department stores and sports equipment stores grew strongly with retailers suggesting that summer discounting and sporting events, such as the European football Championship, boosted sales.
The amount spent online, known as “online spending values”, rose by 2.5% during July 2024, and by 3.6%, compared with July 2023. Total spend, the sum of in-store and online sales, rose by a more moderate 0.7% over the month. The proportion of sales made online increased from 27.4% in June 2024 (revised up from 27.1%) to 27.8% in July 2024.
Commenting on the latest retail sales figures, ONS Director of Economic Statistics Liz McKeown said: “Retail sales grew in July led by increases in department stores and sports equipment shops with both the Euros and discounting across many stores boosting sales.
“These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.”
Responding to the latest ONS Retail Sales Index figures, Kris Hamer, Director of Insight at the British Retail Consortium, said: “Following the gloomy start to summer spending, retailers welcomed the warmer July weather which gave sales growth a boost, particularly in areas such as cosmetics, clothing, footwear, and books as consumers prepared for their summer holidays. Computing also sold well as people upgraded their home office tech purchases. Meanwhile, homeware and furniture performed badly, as people concentrated their spending on summer experiences. The high cost of living is still bearing down on consumers, but with interest rates finally easing, retailers are hopeful that this will buoy consumers confidence, and with it greater spending, particularly as we head into August.
“Retailers are working closely with Government to maximise the industry’s contribution to economic growth. But, with headline inflation showing signs of rising further, retailers face the prospect of another large rise in business rates next year. As retail businesses plan their investment strategies, many will be looking ahead to the Autumn Budget, keen to end 14 years of Conservative business rates rises which has seen the tax rate rise 30%, harming the viability of many retail stores across the country.”
