UK retail sales values rose by 1.8% on a like-for-like basis during July, according to the latest figures from the British Retail Consortium (BRC).
But the growth was measured against a weak July 2008, when sales were hit by changeable weather.
Food sales growth slowed to 4.2% on a like-for-like basis, partly reflecting lower inflation, but homewares and furniture benefited from clearance discounts and the wettest July on record.
Stephen Robertson, BRC director general, said: “July showed us both sides of the British summer and gave some parts of retailing a much-needed boost. Seasonal clothing clearances did well early in the month with good summer food sales as the heatwave continued.
“The largely cooler, wetter second half of the month turned attention indoors helping sales of furniture and homewares.
“There is a sense among some customers that the beginning of the end of recession is here but rising unemployment and job-loss fears will continue to hold back the widespread return of consumer confidence for some time yet.”
Helen Dickinson, head of retail, KPMG, said: “Food growth in value terms slowed, driven by falling inflation in food.”
Joanne Denney-Finch, chief executive at grocery experts IGD, said: “Grocery sales continued to grow in July, although at a slower rate than in June. The slower rate can mainly be attributed to international food commodity markets, which are more stable than last year, helping to reduce price inflation for UK shoppers.
“The stronger pound has also helped to reduce prices for imports, which make up about one-third of the food we eat.
“As autumn approaches, UK produce is becoming more available and the grain harvest is underway. Initial reports suggest that yields are variable but quality is better than expected in view of the weather, limiting the need to import milling grain, so further reducing pressure on prices.”
The cooler second half of July saw a shift to cheaper wintery foods such as soups, stews, root vegetables and home baking, away from salads, soft fruit and prepared deli and barbecue foods, which contributed to the slower growth.
Shoppers continued to search out value lines and promotions, but some also noted signs of trading up and treating.
