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10 Oct 2025, 13:13
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After being negatively impacted by July's rainy weather, retailers are stepping up discounts in an effort to get customers to spend more money.
Last month, which is typically a busy month for fashion, saw a dip in garment and shoe sales as consumers delayed upgrading their summer collections.
However, research on retail sales noted a "big rise" in promotions meant to win back customers.
Spending is being restricted by rising interest rates and greater expenses of living.
The British Retail Consortium (BRC) and KPMG claim that the rainy July weather "did no favours" to sales of apparel and other seasonal products and reduced consumer spending.
Retail sales volumes decreased after inflation, which is presently 7.9%, was taken into account, despite the fact that the value of retail sales was 1.5% higher in July than it was a year earlier.
Not only were High Streets affected last month; online sales also continued to decline, falling by over 7% annually, according to the survey.
Furniture, health, and beauty products did, however, continue to sell well.
Helen Dickinson, CEO of the BRC, which advocates for over 5,000 firms, said that while consumer confidence is generally rising, it is still below longer-term values.
The rate of price growth, or inflation, dropped to 7.9% in June, marking its lowest level in more than a year but remaining high by historical standards.
Official data from the Office for National Statistics (ONS) indicate that this is attributable to lower energy costs and beginning food prices.
The ONS data is more comprehensive than the BRC-KPMG retail statistics. The July figures will be announced next week, but rumours of larger-than-normal summer discounts still imply there may be an impact on inflation.
Because energy costs are down, economists forecast that inflation would decrease to 6.8%.
(Sources: bbc.co.uk)