Latest news with #KrisHamer
Yahoo
4 days ago
- Business
- Yahoo
Consumer confidence falls amid UK price rises
UK consumers have been shaken by rising inflation, with the latest BRC‑Opinium survey showing a sharp drop in consumer confidence as living costs climb. The data points to growing concern among households over the economy and personal finances. Economy outlook darkens as inflation bites Consumer expectations for the UK economy over the next three months fell further—to –33 in July from –28 in June—and personal financial outlook slipped to –7 from –5. BRC chief executive Helen Dickinson said the decline in confidence was unsurprising: 'With the UK economy shrinking for the second consecutive month, … rising inflation, particularly for food, has put more pressure on personal finances'. This sentiment matches ONS figures showing inflation at 3.6% in June, with food and non‑alcoholic drinks rising 4.5% year‑on‑year. Grocery prices fuel cautious spending Despite falling confidence, consumers expect to spend more on groceries—retail spending sentiment nudged up to +3 from +2, with overall spending expectations rising to +16. Kris Hamer, BRC's director of insight, remarked that food inflation has reached its highest level since early last year, driven by rising costs of bills and business expenses. Grocery bills are projected to increase by around £275 annually, squeezing household budgets further. Retail inflation shakes high street resilience Retail inflation has persisted for nine months, in part due to rising employment costs following the Chancellor's budget, said Dickinson. She warned that further tax increases could deepen inflation, suggesting business rates reform must ensure no store ends up worse off. Reuters recently reported UK retail spending rose 3.1% in June, largely driven by food inflation—the sharpest increase since March 2024—while non‑food sales lagged. That underlines how inflation, rather than stronger consumer demand, is propelling overall spending figures in the short term. Background: inflation and economic squeeze UK inflation, currently above the Bank of England's 2% target, has been driven by higher food, energy and wage‑related costs. Economists warn that while interest rate cuts may help in 2026, households remain under pressure. Spending on essentials continues to rise as discretionary spending remains subdued. With food prices leading inflation and consumer confidence weakening, retailers face a delicate balancing act. Competitive pricing strategies may help, but persistent cost pressures risk dampening demand. As government considers reforms, the retail sector is urging protections for both consumers and high‑street businesses in the months ahead. "Consumer confidence falls amid UK price rises" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Fashion Network
4 days ago
- Business
- Fashion Network
Sunny June boosts UK retail sales, fashion edges up, says ONS
Retail sales volumes are estimated to have risen by 0.9% month on month in June 2025, following a fall of 2.8% in May 2025, the Office for National Statistics said on Friday. That May figure was actually revised downwards from the estimated 2.7% the ONS had released this time last month. So while the 0.9% rise for June is good news, we have to bear in mind that a revision a few weeks down the line could improve it -- or it could wipe it out altogether. Sales volumes in June rose by 1.7% year on year, but volumes were down by 1.6% compared with their pre-Covid level in February 2020. More broadly, sales volumes rose by 0.2% in Q2 (Apr to June) 2025 when compared with Q1. Digging into the detail, the ONS said food store sales rose following a fall in May 2025, with retailers reporting the warm weather had a positive effect. Food store sales volumes were up 0.7% month on month but non-food stores -- the total of department, clothing, household and other non-food stores -- rose marginally by only 0.2%. However, department stores and clothing retailers both rose (although clothing only marginally) "with mention of promotions and good weather". But these snippets of good news were partly offset by falls in household goods stores (such as furniture stores) and other non-food retailers (such as those selling secondhand goods, which includes auction houses). Comments from retailers attributed these drops to lower footfall. Non-store retailers' sales volumes, which mainly includes online retailers, rose by 1.7% in June 2025, putting them at their highest level since February 2022. Again, promotions and the good weather contributed to the increase. Frustratingly, the ONS no longer gives percentages for sales values in physical stores. But it does offer them for non-store retailers and it said the amount spent online rose by 2.3% month on month and by 4.5% year on year. Total spend -- that is, in-store and online sales combined -- rose by 1.1% over the month. As a result, the proportion of sales made online rose from 27.4% in May 2025 to 27.8% in June. Analysts stay cautious As usual, analysts have been sharing their views on the numbers and Dr Kris Hamer, director of insight at the British Retail Consortium, welcomes the figures but added that the situation has deteriorated as the BRC's own data shows consumer confidence has tumbled in July, and "sales performance over the rest of the summer is at risk". Also commenting from within the retail sector, Deann Evans, MD EMEA, at Shopify, said that retailers "will be pleased to see sales bounce back in June after falling in May. A record-breaking month for warm weather is likely to have contributed to this boost". The company's data showed hot weather-linked products seeing explosive growth. But "shared cultural moments also drove spending, with consumers looking ahead to major sporting events. Wimbledon certainly captured attention with our data revealing sales of tennis rackets and tennis balls grew by 62.5% and 12.1%, respectively, year on year". Evans was more upbeat than Hamer and added that "this highlights a compelling opportunity for retailers to harness the potential of cultural trends -- and offers encouragement that sales figures will continue to grow for the remainder of the summer months. "However, turning cultural buzz into meaningful commercial impact requires agility and speed from retailers to offer products and experiences that immerse consumers in the moment. Shoppers are seeking a sense of participation and retail is a natural avenue for this. By staying attuned to the cultural pulse, retailers can unlock new ways to drive growth and build loyalty throughout the year. This will be the key to continued success in the weeks and months ahead.' Meanwhile Jacqui Baker, head of retail at RSM UK and chair of ICAEW's Retail Group, added: "The hot weather helped to lift the mood among consumers, while early sales tempted shoppers to the high street. Consumers purchased new outfits ahead of major sporting events in July including Wimbledon and summer headline concerts led by Beyoncé and Oasis. 'While the June figures are welcome news and consumer confidence ticked up last month, nervousness among consumers persists, and the unexpected rise in inflation won't have helped. The higher price of essentials such as food and fuel will only add to the reluctance among consumers to spend as their discretionary income shrinks. 'Concerns remain in the sector, as retailers increasingly run out of headroom to mitigate rising costs. Many will be hoping the government steps in to provide meaningful reductions in business rates, as well as raising the threshold at which employers' National Insurance becomes payable. It's also hoped that the reintroduction of tax-free shopping is brought back on the table, so the sector doesn't miss out further on valuable retail spend.' Interestingly too, Sagar Shah, associate partner at McKinsey & Co, highlighted how tough it can be to predict where consumer attention will go next: 'Retailers are operating in a climate where sentiment and spending no longer move in step. Shoppers are increasingly unpredictable, and historic trends only tell part of the story. Real-time insights into customer behaviour will be crucial for anticipating trends before they hit the shelves.'
Fashion Network
5 days ago
- Business
- Fashion Network
Sunny June boosts UK retail sales, fashion edges up, says ONS
Retail sales volumes are estimated to have risen by 0.9% month on month in June 2025, following a fall of 2.8% in May 2025, the Office for National Statistics said on Friday. That May figure was actually revised downwards from the estimated 2.7% the ONS had released this time last month. So while the 0.9% rise for June is good news, we have to bear in mind that a revision a few weeks down the line could improve it -- or it could wipe it out altogether. Sales volumes in June rose by 1.7% year on year, but volumes were down by 1.6% compared with their pre-Covid level in February 2020. More broadly, sales volumes rose by 0.2% in Q2 (Apr to June) 2025 when compared with Q1. Digging into the detail, the ONS said food store sales rose following a fall in May 2025, with retailers reporting the warm weather had a positive effect. Food store sales volumes were up 0.7% month on month but non-food stores -- the total of department, clothing, household and other non-food stores -- rose marginally by only 0.2%. However, department stores and clothing retailers both rose (although clothing only marginally) "with mention of promotions and good weather". But these snippets of good news were partly offset by falls in household goods stores (such as furniture stores) and other non-food retailers (such as those selling secondhand goods, which includes auction houses). Comments from retailers attributed these drops to lower footfall. Non-store retailers' sales volumes, which mainly includes online retailers, rose by 1.7% in June 2025, putting them at their highest level since February 2022. Again, promotions and the good weather contributed to the increase. Frustratingly, the ONS no longer gives percentages for sales values in physical stores. But it does offer them for non-store retailers and it said the amount spent online rose by 2.3% month on month and by 4.5% year on year. Total spend -- that is, in-store and online sales combined -- rose by 1.1% over the month. As a result, the proportion of sales made online rose from 27.4% in May 2025 to 27.8% in June. Analysts stay cautious As usual, analysts have been sharing their views on the numbers and Dr Kris Hamer, director of insight at the British Retail Consortium, welcomes the figures but added that the situation has deteriorated as the BRC's own data shows consumer confidence has tumbled in July, and "sales performance over the rest of the summer is at risk". Also commenting from within the retail sector, Deann Evans, MD EMEA, at Shopify, said that retailers "will be pleased to see sales bounce back in June after falling in May. A record-breaking month for warm weather is likely to have contributed to this boost". The company's data showed hot weather-linked products seeing explosive growth. But "shared cultural moments also drove spending, with consumers looking ahead to major sporting events. Wimbledon certainly captured attention with our data revealing sales of tennis rackets and tennis balls grew by 62.5% and 12.1%, respectively, year on year". Evans was more upbeat than Hamer and added that "this highlights a compelling opportunity for retailers to harness the potential of cultural trends -- and offers encouragement that sales figures will continue to grow for the remainder of the summer months. "However, turning cultural buzz into meaningful commercial impact requires agility and speed from retailers to offer products and experiences that immerse consumers in the moment. Shoppers are seeking a sense of participation and retail is a natural avenue for this. By staying attuned to the cultural pulse, retailers can unlock new ways to drive growth and build loyalty throughout the year. This will be the key to continued success in the weeks and months ahead.' Meanwhile Jacqui Baker, head of retail at RSM UK and chair of ICAEW's Retail Group, added: "The hot weather helped to lift the mood among consumers, while early sales tempted shoppers to the high street. Consumers purchased new outfits ahead of major sporting events in July including Wimbledon and summer headline concerts led by Beyoncé and Oasis. 'While the June figures are welcome news and consumer confidence ticked up last month, nervousness among consumers persists, and the unexpected rise in inflation won't have helped. The higher price of essentials such as food and fuel will only add to the reluctance among consumers to spend as their discretionary income shrinks. 'Concerns remain in the sector, as retailers increasingly run out of headroom to mitigate rising costs. Many will be hoping the government steps in to provide meaningful reductions in business rates, as well as raising the threshold at which employers' National Insurance becomes payable. It's also hoped that the reintroduction of tax-free shopping is brought back on the table, so the sector doesn't miss out further on valuable retail spend.' Interestingly too, Sagar Shah, associate partner at McKinsey & Co, highlighted how tough it can be to predict where consumer attention will go next: 'Retailers are operating in a climate where sentiment and spending no longer move in step. Shoppers are increasingly unpredictable, and historic trends only tell part of the story. Real-time insights into customer behaviour will be crucial for anticipating trends before they hit the shelves.'
Fashion Network
5 days ago
- Business
- Fashion Network
Sunny June boosts UK retail sales, fashion edges up, says ONS
Retail sales volumes are estimated to have risen by 0.9% month on month in June 2025, following a fall of 2.8% in May 2025, the Office for National Statistics said on Friday. That May figure was actually revised downwards from the estimated 2.7% the ONS had released this time last month. So while the 0.9% rise for June is good news, we have to bear in mind that a revision a few weeks down the line could improve it -- or it could wipe it out altogether. Sales volumes in June rose by 1.7% year on year, but volumes were down by 1.6% compared with their pre-Covid level in February 2020. More broadly, sales volumes rose by 0.2% in Q2 (Apr to June) 2025 when compared with Q1. Digging into the detail, the ONS said food store sales rose following a fall in May 2025, with retailers reporting the warm weather had a positive effect. Food store sales volumes were up 0.7% month on month but non-food stores -- the total of department, clothing, household and other non-food stores -- rose marginally by only 0.2%. However, department stores and clothing retailers both rose (although clothing only marginally) "with mention of promotions and good weather". But these snippets of good news were partly offset by falls in household goods stores (such as furniture stores) and other non-food retailers (such as those selling secondhand goods, which includes auction houses). Comments from retailers attributed these drops to lower footfall. Non-store retailers' sales volumes, which mainly includes online retailers, rose by 1.7% in June 2025, putting them at their highest level since February 2022. Again, promotions and the good weather contributed to the increase. Frustratingly, the ONS no longer gives percentages for sales values in physical stores. But it does offer them for non-store retailers and it said the amount spent online rose by 2.3% month on month and by 4.5% year on year. Total spend -- that is, in-store and online sales combined -- rose by 1.1% over the month. As a result, the proportion of sales made online rose from 27.4% in May 2025 to 27.8% in June. Analysts stay cautious As usual, analysts have been sharing their views on the numbers and Dr Kris Hamer, director of insight at the British Retail Consortium, welcomes the figures but added that the situation has deteriorated as the BRC's own data shows consumer confidence has tumbled in July, and "sales performance over the rest of the summer is at risk". Also commenting from within the retail sector, Deann Evans, MD EMEA, at Shopify, said that retailers "will be pleased to see sales bounce back in June after falling in May. A record-breaking month for warm weather is likely to have contributed to this boost". The company's data showed hot weather-linked products seeing explosive growth. But "shared cultural moments also drove spending, with consumers looking ahead to major sporting events. Wimbledon certainly captured attention with our data revealing sales of tennis rackets and tennis balls grew by 62.5% and 12.1%, respectively, year on year". Evans was more upbeat than Hamer and added that "this highlights a compelling opportunity for retailers to harness the potential of cultural trends -- and offers encouragement that sales figures will continue to grow for the remainder of the summer months. "However, turning cultural buzz into meaningful commercial impact requires agility and speed from retailers to offer products and experiences that immerse consumers in the moment. Shoppers are seeking a sense of participation and retail is a natural avenue for this. By staying attuned to the cultural pulse, retailers can unlock new ways to drive growth and build loyalty throughout the year. This will be the key to continued success in the weeks and months ahead.' Meanwhile Jacqui Baker, head of retail at RSM UK and chair of ICAEW's Retail Group, added: "The hot weather helped to lift the mood among consumers, while early sales tempted shoppers to the high street. Consumers purchased new outfits ahead of major sporting events in July including Wimbledon and summer headline concerts led by Beyoncé and Oasis. 'While the June figures are welcome news and consumer confidence ticked up last month, nervousness among consumers persists, and the unexpected rise in inflation won't have helped. The higher price of essentials such as food and fuel will only add to the reluctance among consumers to spend as their discretionary income shrinks. 'Concerns remain in the sector, as retailers increasingly run out of headroom to mitigate rising costs. Many will be hoping the government steps in to provide meaningful reductions in business rates, as well as raising the threshold at which employers' National Insurance becomes payable. It's also hoped that the reintroduction of tax-free shopping is brought back on the table, so the sector doesn't miss out further on valuable retail spend.' Interestingly too, Sagar Shah, associate partner at McKinsey & Co, highlighted how tough it can be to predict where consumer attention will go next: 'Retailers are operating in a climate where sentiment and spending no longer move in step. Shoppers are increasingly unpredictable, and historic trends only tell part of the story. Real-time insights into customer behaviour will be crucial for anticipating trends before they hit the shelves.'
Yahoo
19-06-2025
- Business
- Yahoo
UK inflation drops slightly to 3.4% in May 2025
The UK Consumer Prices Index (CPI) increased by 3.4% over the 12 months ended May 2025, a slight decline from the 3.5% rise in the year leading up to April, according to data released by the Office for National Statistics (ONS). May saw a CPI increase of 0.2%, marginally lower than the 0.3% increase recorded in May of the previous year. The most significant decrease in the monthly variation of the CPI annual rate was attributed to the transport sector. Upward pressures on the rate were primarily driven by increases in the food sector, along with furniture and household goods. Core CPI, which excludes the volatile categories of energy, food, alcohol and tobacco, saw a 3.5% increase in the year ending in May - a decrease from the 3.8% rise recorded in the year to April. The annual rate for CPI goods climbed from 1.7% to 2.0%, while the annual rate for CPI services decelerated from 5.4% to 4.7%. British Retail Consortium director of Insight Kris Hamer stated: 'Headline inflation held at 3.4% as higher bills and new business costs introduced in April continued to filter through into the economy. Worryingly for consumers, the price of the weekly shop rose once again as food inflation continued its upward trajectory, reaching its highest level since February last year. However, there were some bright spots. Deflation persisted in the clothing and footwear category and within the food category breakfast items such as eggs, bread and cereals fell in price on the month, offering some relief.' Negative impacts from various sectors were somewhat counterbalanced by the rising costs of food and non-alcoholic beverages, which saw a 4.4% price increase over the 12 months to May, an acceleration from the 3.4% increase in the preceding year to April. This rate for May is the highest since February 2024, when it reached 5%. In terms of monthly changes, prices for food and non-alcoholic beverages climbed by 0.7% in May, contrasting with a decrease of 0.3% during the same month in the previous year. Hamer added: 'Since October, retailers have warned that the costs from the Chancellor's [October 2024] Budget could not be fully absorbed and would inevitably lead to higher prices for shoppers. Food inflation is now above 4% and looks set to increase further later in the year. The government must now take action to relieve cost pressures retailers are facing. Ensuring no shop pays more under business rates reform would be a meaningful step forward, offering much needed relief to an industry that continues to see prices, job losses and store closures all rising.' "UK inflation drops slightly to 3.4% in May 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
