Online Discounts Boost Struggling UK Retailers In July
British shoppers spent more than expected last month after being enticed by online shopping deals, official figures showed on Friday, but sales volumes look set to resume their decline as households face the highest inflation in 40 years.

Sales fell 1.2% over the three months to July
Retail sales volumes, adjusted for inflation and the time of year, rose 0.3% on the month in July – their first increase in three months – in contrast to economists’ expectations for a 0.2% drop in a Reuters poll. Sales fell 1.2% over the three months to July – after sales in May and June were revised down from initial estimates – and were 3.4% lower than a year earlier, broadly in line with forecasts.
Growth was overwhelmingly driven by a 4.8% surge in online and mail order volumes, the biggest monthly jump since December.
Amazon held its annual Prime Day promotion last month, which in previous years has coincided with an uptick in British retail sales, although the ONS said greater spending was seen at a range of online retailers, especially for household goods. Other retailers had a poor month, with food volumes up just 0.1% after a boost in June from celebrations to mark Queen Elizabeth’s Jubilee, while clothing sales fell 1.2%. Motorists bought 0.9% less fuel, which the ONS attributed to people driving less during exceptionally hot weather.
The longer-term trend for sales was downward, the ONS said, and the Bank of England has warned high inflation is likely to tip Britain into recession later this year.
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