Positive economic news bolsters retail sales to two month high

Sales figures from BDO’s High Street Sales Tracker for the week ending 7 June 2009 were as follows:

  • Total Sales: +2.8%

Total sales increased by 2.8 per cent on a like-for-like basis, the strongest result for more than 8 weeks.

  • Non-fashion: +2.7%

Non-fashion retailers had a relatively good week with sales 2.7 per cent higher compared to last year. Although some stores reported softer demand due to Fathers Day’s being one week later this year, this was offset by stronger general demand for luxury goods, outdoor equipment and household products.

  • Fashion: +4.2%

The upward improvement in fashion demand continued this week with sales moving into positive territory for the first time in four weeks. The cooler weekend weather helped encourage shopping trips as opposed to leisure activity, with targeted promotions helping some stores register double-digit growth.

  • Homewares: -7.9%

Although homeware results improved this week, sales remained negative compared to last year, down 7.9 per cent. The recent pattern of weak demand for furniture continued, partially balanced by stronger demand for cookware and textiles.

  • Non-Store: +38.3%

Sales made through non-store channels registered the slowest rate of expansion this year. Although takings are still growing very strongly, the explosive growth rates from earlier in the year appear to be moderating.

Rupert Eastell, Head of Retail at BDO, says: “Positive economic news from a number of sectors helped bolster consumer confidence and spending, resulting in an encouraging week for many of the UK’s retailers - particularly those in the fashion and non-fashion sectors.

“Overall like-for-like sales increased by 2.8 per cent, which represented the best weekly increase for more than two months as retailers benefited from higher footfall levels and more positive economic news concerning the economy.  Targeted promotions also helped to drive sales, especially across the fashion sector, as did good product availability,” concludes Eastell.

Sales this week last year

Retailers started to feel the impact of tougher trading conditions this week last year, with non-fashion (+3%) the only sector witnessing higher sales. Fashion (-0.3%) was marginally down, while homewares (-15.9%) dropped steeply reflecting a sharp downturn in house prices.

Source: BDO High Street Sales Tracker

ENDS

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

Notes to editors:

BDO’s High Street Sales Tracker outlines weekly sales changes of more than 60 mid market retailers with some 10,000 individual stores. These are mainly located on high streets through the UK, however, they exclude grocers. The results are published every Friday.

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