Pre-Easter demand not enough to boost sales, says BDO

Sales figures from BDO’s High Street Sales Tracker for the week ending 5 April 2009 were as follows:

  • Total Sales: 0.3%

Although growing by 0.3 per cent, total sales on a like-for-like basis remained broadly flat.

  • Non-fashion: +4.6%

Non-fashion retailers generally had a good week, although down a little on last week’s excellent results. Strong demand for gifts and luxury items were reported by many stores, with continuing evidence of helpful tourism demand. Discretionary leisure purchases also appeared to strengthen.

  • Fashion: -1.2%

Fashion sales were lower this week, which, given the extremely weak comparatives last year, was a disappointing performance. Generally it was only stores running mid-season promotions that managed to post positive results, with sales made over the internet leading the way.

  • Homewares: -1.0%

The positive sales momentum and recent weeks’ performance appeared to moderate, with sales falling back into negative territory. Big ticket purchases in particular were weaker, while sales of textiles and floor coverings also decreased.

  • Non-Store: +51.0%

Despite the warm weather, sales rose strongly helped by increased promotional activity linked to mid-season sales.

Rupert Eastell, Head of Retail at BDO, says: “Demand remained fairly solid this week helped by the Easter build-up and buoyant online takings.  Overall, like-for-like sales were broadly flat, with positive non-fashion results offset by lower fashion and homeware figures. ”

“However, when you consider the very weak prior-year comparatives, especially across fashion stores, these results imply a noticeable slowing of underlying sales.  Although the recent trend is still better than expected given the economic conditions, demand remains volatile and difficult to predict.  Retailers will be hoping that this sunny, dry weather continues well into the Easter period to bolster sales, particularly across DIY and homewares,” he concluded.

Sales this week last year (w/e 29/3/08)

Sales were negative across all three sectors this week last year, with retailers impacted by a post-Easter slump in demand, and negative news about falling house prices. Fashion and homeware stores were badly impacted, with sales falling by double digit levels in both areas. Non-fashion stores also had a bad week, although sales held-up relatively well.

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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