Supermarkets were buoyed by bumper demand for food and drink last month as shoppers celebrated the Queens Platinum Jubilee, according to new figures.
The Office for National Statistics (ONS) revealed food sales volumes increased by 3.1%, following from a recent slump for the sector as people retuned to pubs and restaurants, as a result of the Covid-19 restrictions being eased.
The data also revealed there was a rise in specialist food stores such as butchers and bakers of 0.8% and alcohol and tobacco stores, which saw an increase of 3.5%.
However, overall retail sales fell by 5.9% year-on-year in June, as sales value slightly increased by 1.7%.
Online sales also saw a dramatic drop of nearly 10% year-on-year as ecommerce accounted for 25.3% of all sales last month.
This is the lowest proportion since March 2020.
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“Retail sales have been given a slight monthly boost by Jubilee fever and a double bank holiday. Although, predominantly driven by food sales. Non-food sales continued to decline although still above pre-pandemic level,” McKinsey & Company partner Samantha Philips said.
“Whilst non-store sales volumes are still 20% pre-pandemic levels, online sales are falling faster than total. This is likely driven by the discretionary nature of many of the categories that over-index through digital.
Despite the fall in sales in June, the proportion of online sales remains above its level of 19.7% in February 2020, pre-pandemic.
The ONS added that fuel volumes decreased by 4.3%, as customers avoided filling up as petrol and diesel prices rose to record highs.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “The cost-of-living crunch caused by record inflation continue to damage consumer confidence and stifle household spending.
“Discretionary spending and particularly bigger purchases were put off as consumers become increasingly concerned about the future.”
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