Retailers say election uncertainty, poor weather and low footfall hit sales in June

Shops that do not sell food, including clothes shops and department stores, showed a 2.1 per cent fall during the month, down from a rise of 3.3 per cent in May.

They blamed a mix of “election uncertainty, poor weather, and low footfall,” for their bad fortunes, the ONS said.

Out of the eight sectors that the ONS tracks in its retail figures only one, those that sell petrol and diesel, saw growth during the month, up 2.2 per cent.

Food shops were the second-best performing category during the month, but even so sales fell 1.1 per cent in June.

“Unfortunately June has been a washout for retail sales, with retailers yet to sustain two consecutive months of sales growth this year, with another slowdown after an uptick in May,” said Erin Brookes, an expert at consulting firm Alvarez & Marsal.

“The poor weather in June saw disappointing sales of summer goods including across food and clothing. This comes despite significant discounting and deflation in fashion retail, with volumes remaining stagnant.

“Looking ahead, England reaching the final of the Euros, and the start of the school holiday, may have driven sales higher in July, but retailers will be concerned about structural volume decline against a backdrop of intensifying competition.

“With tourism to potentially offer some sales uplift over the summer, retailers must look ahead and plan activities for the back half of the calendar year to ensure performance.”

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club commented: "Retail sales volumes came in weaker than expected in June, following a stronger-than-expected May.

"This continues the volatility in monthly sales patterns seen since the turn of the year, with strange weather and economic caution playing a role.

“Consumers weren't exactly splashing the cash in June - sales in every category, excluding fuel, declined.

“But we should remember that May sales were especially strong. Sales volumes over the last three and six months are broadly flat and suggest the consumer is in reasonable health, but not exactly feeling flush.”

The volatility in monthly retail sales is making it even more difficult than usual to read the economic tea leaves, Mr Huggins said.

He added: “June was not a great month for the sector. But inflation is moderating, wages are rising and the election is now done and dusted, providing much needed certainty. This means sales could easily bounce back over summer, especially if the weather Gods start being a little more kind."