First-time buyer demand for furniture and the ‘lipstick effect’ boost June sales
Demand for furniture and beauty goods caused retail sales to rise in June, boosted by good weather and slowly-recovering consumer confidence.
Sales in the UK rose 3.1 per cent year on year in June, against a decline of 0.2 per cent in June 2024, according to data from the British Retail Consortium (BRC).
“Retailers will be hoping that the buying is not yet complete and that the pace picks up further in July and August as suitcases get packed and the sun hopefully keeps shining,” Linda Ellett, UK head of consumer at KPMG, said.
Food sales increased by 4.1 per cent, while non-food sales increased by 2.2 per cent.
Data from Barclays showed that furniture sales rose 8.2 per cent following a record number of mortgage completions in March 2025.
Approvals for first-time buyers rose 70 per cent compared to February, ahead of April’s stamp duty changes.
Sales of pharmacy, health and beauty products also rose 10.1 per cent, boosted by the sunny weather and the ‘lipstick effect’, where customers spend more on small treats in times of uncertainty.
Despite the rise in overall retail sales, Barclays data found that online sales fell by 0.1 per cent in June, suggesting that consumers were tempted outside to buy their goods.
Karen Johnson, head of retail at Barclays, said that despite pockets of growth, consumers still “spent cautiously… prioritising value as they navigate economic uncertainty”.
“Encouragingly… confidence in household finances improved, showing consumers’ willingness to spend on the things that matter most to them.”
Confidence in household finances reached its highest point since February as consumers “shored up their finances” in light of the current economic outlook, Barclays said.
Andy Sumpter, retail Consultant for Sensormatic, warned that consumer confidence has “yet to find its feet”.
“That said, the rate of decline is easing, and with summer now in full swing, retailers have an opportunity to turn seasonal footfall into sustained momentum – especially those who can deliver value, experience, and convenience in equal measure.”