(Bloomberg) -- Britain’s long spell of hot weather boosted sales in shops and spending on “staycations” as consumers hit by a surge in the cost of living opted to cut back on overseas travel, two separate reports showed.

The British Retail Consortium said its measure of retail sales rose 2.3% in July after 1% growth the month before. Barclaycard, which handles almost half of credit and debit card transactions in the UK, said consumer spending rose 7.7% from a year ago last month and 1.6% from June.

Shoppers splashed out on clothing, beauty products and electronics. Inflation, which is at a 40-year high and set to accellerate, meant the volume of goods purchased declined even as the value of spending increased, the BRC said.

“Summer clothing, picnic treats, and electric fans all benefitted from the record temperatures as consumers made the most of the sunshine,” said Helen Dickinson, Chief Executive at the BRC. “However, with inflation at over 9%, many retailers are still contending with falling sales volumes during what remains an incredibly difficult trading period.”

  • Barclaycard reported average spent in supermarkets declined, with consumers buying a smaller number of goods and making more frequent trips
  • BRC research shows non-food sales fell 3.9%, much sharper than June’s 0.6% decline
  • Consumer confidence levels weer up on those in June, but behind those seen in July 2021, Barclaycard said.

“July saw Brits get into the swing of summer by prioritizing non-essential spending on staycations,” said José Carvalho, head of consumer products at Barclaycard. “However, inflation continues to have a noticeable impact, with price rises forcing shoppers to spend more on essential everyday items such as fuel, butter and milk.”

 

 

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