The British high street suffered a slow June as cautious consumers, swayed by warmer weather and economic jitters, opted to shop online instead.
In-store sales crept up just 0.6% year-on-year, well below inflation, according to BDO’s latest High Street Sales Tracker.
By contrast, non-store sales – which include online – rose 4.3%, highlighting a growing gap in performance between physical and digital retail.
Fashion was a key driver, with online sales up 10% last month. High street fashion sales, meanwhile, fell 0.2%.
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It marks the sixth consecutive month that in-store sales growth has trailed inflation, with volumes sliding across fashion, homewares and lifestyle categories.
The trend echoes CBI data showing retail sales volumes have declined for nine months in a row.
BDO’s head of retail and wholesale, Sophie Michael, said shoppers remain “incredibly cautious” about discretionary spending amid rising job losses and global instability.
“There is a growing gap between physical and online,” Michael added. “Online retailers have the agility to pivot quickly — promoting summer gear when it’s hot and waterproofs when it rains.”
She warned that unless retailers reinvent stores and invest in blended propositions, more closures could follow.
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