Summers Online Shopping Trend Favours Next but Weighs on Primark says Citi

Industry data from the British Retail Consortium and Barclaycard have indicated that UK consumer spending strengthened in June, according to analysts at Citi. The improvement in retail sales appeared to be driven by stronger demand for non-food products, with implications for a range of listed retailers across the sector.

The BRC reported total sales growth of 1.9% for June, whilst two-year comparisons suggested momentum had improved from May levels. Non-food sales demonstrated particular strength during the period, with online sales accounting for the highest proportion of retail spending recorded so far this year.

Barclaycard’s spending data, which covers the period to 19 June and therefore excludes the late-month heatwave, also pointed to improving demand for DIY and electrical goods. This marked the first growth in those categories since May 2025, suggesting a potential turning point for these segments.

Citi identified several retailers with significant exposure to electronics and general merchandise as potential beneficiaries of these trends. The firm named Currys PLC, Tesco PLC, Kingfisher PLC, J Sainsbury PLC, B&M European Value Retail SA and Wickes Group PLC among those positioned to gain. The US bank also expressed favour for Next PLC, citing the company’s strong online business as a competitive advantage in the current environment.

The analysts suggested the data was less encouraging for retailers with limited online operations. Associated British Foods PLC’s Primark chain and B&M were highlighted as potentially facing headwinds from the shift towards digital channels.

Citi noted that the BRC had reiterated warnings regarding rising operating costs, which are “squeezing retailers’ ability to invest, create jobs and keep prices down” despite the improvement in sales figures. This observation suggests that whilst demand conditions have improved, margin pressures remain a concern for the sector.