Retail Sales ‘dry up’ in July amid 0.5% downturn

Matthew Ryan, CFA Ebury

Retail Sales dried up in July as the heatwave put shoppers off hitting the high street, highlighting the pressure retailers are facing during the crucial summer trading period.

The second half of the year so far looks far from being smooth sailing. Household budgets are feeling the heat with July’s energy price cap now in place, stalled interest rate cuts, and shaky consumer confidence all harming disposable incomes and spending appetite.

Meanwhile, retailers are facing a perfect storm of rising operating and employment costs, higher fuel and energy prices driven by the Iran conflict, while fresh US tariff tensions threaten further disruption and uncertainty.

With the summer holidays still in full swing, it’s vital that retailers capitalise on this golden window ahead of Autumn. Businesses that focus on building operational resilience, minimise currency risk exposure via robust hedging strategies, and ensure ready access to flexible finance will be best placed to weather any further headwinds.

Author

Matthew Ryan, CFA

Ebury

Matthew is Global Head of Market Strategy at FX specialist Ebury, where he has been part of the strategy team since 2014. He provides fundamental FX analysis for a wide range of G10 and emerging market currencies.

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