Retail sales bounce back in March, says BDO

Retail sales entered positive territory for only the third time in the last 12 months, with like-for-like sales up by 1.3 per cent in March, according to the latest edition of the BDO High Street Sales Tracker.

However, homeware sales increased for the first time since July 2008, with like-for-like sales up by 5.7 per cent.

Rupert Eastell, Head of Retail, at BDO says: “After a dismal February and very difficult trading conditions on the high street, retailers reported surprisingly robust results in March.  Underlying demand was much higher than we expected, and sales appear to have been bolstered by the driest March weather for six years.”

“It is clearly premature to classify these upbeat figures as a definite recovery trend; however, there are signs that demand is holding up and not contracting as sharply as we feared last month,” he continues.

Fashion – takings decreased marginally, sales down 1.1%
Fashion sales were the only sector to report a downward trend during March.  Whilst the fine weather helped to drive demand for seasonal spring fashion and footwear; sales of formalwear, accessories and lingerie were weaker.  

Non-fashion – sales rose by 6.3% Non-fashion retailers had a good month with the change in dates for Mother’s Day.  Gifting, health and beauty and luxury stores all benefited from strong sales while general household demand also held-up.  In contrast, demand for leisure goods remained subdued, whilst outdoor leisure specialists also found it more difficult.

Homeware – first sales increase since June 2008, up 5.7%
Homeware stores reported an excellent month with sales returning to positive territory for the first time since June last year.  Prompted by the improved weather, DIY activity was popular, helping to boost demand for lighting, textiles and blinds. Furniture sales were also up.

“Discounting, promotions and the good weather were clearly the tonic retailers needed to boost sales into positive territory during March.  Another good month of sales during April will be essential to the future of UK retailers - particularly as Quarter Day will still be fresh in many people’s minds.  Retailers will be hoping that this sunny, dry weather continues well into the Easter period,” concludes Eastell.

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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