Soggy June hits sales after lift from Jubilee

Strong sales of party food and clothes ahead of the Diamond Jubilee celebrations helped beleaguered retailers keep their heads above water in June.

Like-for-like sales rose 1.4 per cent over the month, the British Retail Consortium (BRC) said, after the Jubilee sparked the strongest week for grocery sales since Easter and a rare blast of sun drove sales of summer clothes.

But 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 per cent 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 as shoppers cut back on non-essential spending, ­although some were prompted to buy knitwear. Outdoor furniture and gardening equipment was also hit, with retailers forced to discount to drum up sales.