10 July 2012 12:15
High street sales were lifted by a Diamond Jubilee 'bunting boost', which helped beleaguered retailers weather the storm in June, the British Retail Consortium (BRC) has said.
Like-for-like sales rose 1.4% over the month, according to the BRC's report, after the Jubilee sparked the strongest week for grocery sales since Easter and a rare, brief blast of sun drove sales of summer clothing.
However, the rest of the month proved "challenging" as the wettest June on record kept shoppers at home and dampened demand for barbecues and gardening items, while even home improvement failed to gain a boost.
Despite inflation, like-for-like sales over the first half of 2012 grew just 0.8% on the previous year, highlighting the strain on the sector amid the squeeze in people's incomes.
BRC director general Stephen Robertson said: "It was the bunting boost. June was saved by the feel-good lift of the Jubilee, showing how crucial these temporary factors are in our difficult trading conditions.
"Sadly the soggy celebrations over the Jubilee weekend itself, which heralded the start of the wettest June on record, were followed by far weaker business for the rest of the month."
The Jubilee celebrations boosted sales of alcohol, crisps, cakes and dips, while the warm weather in the run-up to the event stimulated sales of summer fashion, such as shorts, dresses and sandals.
But the boost proved short-lived and the fortunes of the high street reversed amid grim weather in the wake of Jubilee.
Women's clothing saw sales decline and outdoor furniture and gardening equipment was also hit, with retailers being forced to put on discounts to drum up sales.
However, department stores benefited as footfall numbers were boosted by the rain, reporting strong sales of children's clothes and online sales rose 12% as people stuck indoors did their shopping online.
Electrical goods were supported by Euro 2012, which prompted sales of TVs, while laptops, e-book readers and tablet computers continued to sell well.