MHA: This wasn’t just a football bounce as consumers kept spending

Retail sales across the UK increased by 1% in June compared with May, the Office for National Statistics reported, with the boost attributed to warmer weather, promotional discounting and the World Cup.

Rajeev Shaunak, head of consumer at MHA, said: “June delivered another welcome surprise for retailers. After May’s stronger-than-expected performance, many expected sales to cool, but record-breaking temperatures and the feel-good factor of the World Cup kept consumers spending.

“This wasn’t just a football bounce – it was a rare alignment of sunshine, sport and improving consumer sentiment. While previous World Cups have tended to shift spending towards pubs, supermarkets and food and drink rather than materially lifting overall retail sales, this year’s tournament has coincided with the hottest June on record, creating a broader uplift across clothing, seasonal goods, online retail and leisure spending.

“Retailers should still be cautious about reading too much into one strong month. For the new Prime Minister and his newly appointed Chancellor, returning consumer confidence will be a critical task and a significant marker of economic recovery. Household budgets remain under pressure, and the real test is whether this early ‘bounce’ evolves into sustained consumer confidence or proves to be another short-lived summer spike. A heatwave can fill the tills for a month, but only confidence keeps them ringing.”

Among its UK locations, accountancy and advisory firm MHA has offices in Aberdeen and Edinburgh.