June's retail sales result in rollercoaster ride for retailers

UK retail sales weakened again in June with like-for-like sales falling by 0.9 per cent according to the latest edition of the BDO High Street Sales Tracker. 

Although this represents a small improvement on May, the key issue during June was that sales fluctuated wildly from highs of 6.0 per cent (week ending 21 June) to lows of -7.8 per cent (week ending 28 June).  

Trade in most areas was promotion-led, with stores that started summer discounting early generally outperforming those that waited until the last week of the month.

Rupert Eastell, Head of Retail at BDO, said: “Many had expected that by this point in the year retail sales would have down by about 5 or 6 per cent, however, the first six months of the year have been reasonably positive.  The next six months will remain a real test for retailers – particularly as many believe that the sector has yet to reach the bottom of the downturn.”

“General background noise about the strength of the recovery and rising unemployment means that consumers will continue to be wary of spending,” continues Eastell.

Fashion: -1.1%
Fashion retailers saw takings marginally fall during June, with like-for-like sales down 1.1 per cent.  Spending was very much focused on seasonal summer ranges, with shoppers shying away from making expensive discretionary purchases such as lingerie and footwear.

Non-fashion: +1.7%
Non-fashion like-for-like sales rose by 1.7 per cent – the only sub sector with positive sales results during the month.  Demand was pretty subdued in most categories with only luxury stores reporting consistent growth throughout the month.

Homeware: -5.6%
Despite the weak comparisons, sales continued to retreat with like-for-like sales falling by 5.6 per cent.  Although there was a slight improvement in some areas, such as furniture and textiles, demand generally remained muted.

Source: BDO High Street Sales Tracker

ENDS
BDO’s High Street Sales Tracker outlines weekly like-for-like sales changes of some 70 mid-tier retailers with c10,000 individual stores across Fashion: accessories, clothing, footwear. Non-fashion: general household goods, gifts, health & beauty, leisure goods. Homewares: cookware, furniture & floor coverings, lighting, linen & textiles.

For more information, please contact Dee Crooks at BDO on 020 7893 2761 / 07815 172 051 or email dee.crooks@bdo.co.uk

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