UK Shops Offering Discounts to Tempt Hard-hit Customers

Retailers in the UK are ramping up promotions to try to persuade shoppers to spend more after July’s wet weather hit business.

Sales of clothing and shoes declined last month, which is usually a busy month for fashion, as shoppers held back from updating their summer wardrobes.

But a report on retail sales said there was a “big rise” in offers designed to persuade shoppers back.

The higher cost of living and rising interest rates are squeezing spending.

According to the British Retail Consortium, BRC and KPMG, spending in July was dented by the damp weather, which “did no favours” to sales of clothing, and other seasonal goods.

The value of retail sales was 1.5% higher in July compared to a year ago, but volumes were lower once inflation, which is currently 7.9%, was taken into account..

It was not just High Streets impacted last month, online sales also continued to slide, falling nearly 7% year-on-year.

However, sales of furniture, health and beauty goods held up.

Helen Dickinson, boss of the BRC, which represents some 5,000 businesses said while consumer confidence is generally improving, it remains below longer-term levels.

Inflation fell to 7.9% in June, its lowest level in more than a year but still high by historical standards.

This is due to energy bills and food prices starting to fall, official figures from the Office for National Statistics (ONS) suggest.

The BRC-KPMG retail statistics are less extensive than the ONS figures.

However, reports of larger-than-usual summer discounts still suggest there could be an impact on inflation when the July data is released next week.

Economists are predicting inflation to drop to 6.8% due to energy prices falling.