Crisis on High Street deepens after sales slump in June
The crisis on the High Street has deepened after sales fell in June.
Unprecedented hot weather and the World Cup deterred shoppers from splashing out – especially on new clothes – as they focused spending on pub trips, according to the latest data from accountancy firm BDO.
Sales grew by only 0.6 per cent in June compared to the same month in 2025, meaning when inflation is factored in, the volume of sales fell.
The numbers paint another grim picture of the challenges facing the High Street after a slew of retailers have shut shops this year.
Just this week, former WH Smith chain TG Jones was revealed to be on the brink of shutting around 150 shops – joining the likes of Claire’s Accessories, Russell & Bromley, LK Bennett and River Island.
And experts at BDO said it now appeared that a boost in May – when sales grew 3.4 per cent compared to the same month last year – was simply a ‘blip’.
Heatwave: Warm weather has put a dampener on spending last month, dashing hopes of a recovery
Experts have already warned that consumers are prioritising their spending on essentials as the war in Iran has resulted in fears of looming grocery and energy bill rises.
Motorists have already seen prices at the pump surge since the war broke out at the end of February.
Online retailers saw sales rise 6.9 per cent but in-shop sales fell by 1.4 per cent, with fashion and lifestyle products doing especially poorly, experts said.
The contrast will be salt in the wound for High Street retailers who have this month bemoaned the Government’s slow approach to cracking down on a loophole which allows online giants to ship cheap parcels to the UK without paying customs duty. Labour has pledged to do this before October 2028 – but bosses believe this will be too late.
Sophie Michael, head of retail and wholesale at BDO, said that big sporting events like the World Cup and Olympics are actually a deterrent for shopping as consumers instead ‘redirect their purses’ towards hospitality spending.
Hot weather – with the UK breaking the record for hottest June day last week – also did not help, with retailers ‘no doubt’ worried that more heatwaves this summer ‘could become a regular drag’ on sales.
May’s performance appears now to be a ‘blip’ as ‘major challenges’ faced by retailers persist, including higher costs and political uncertainty over who will be the next Prime Minister, Michael added.
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