Retail sales remain down despite half-term boost

Sales figures from BDO’s Like-for-Like Club for the week ending 22 February 2009 were as follows:

• Total Sales: -0.6%
  Total sales on a like-for-like basis fell by 0.6 per cent despite a boost from half-term that helped fashion retailers marginally grow sales.
• Non-fashion: -0.6%
  Non-fashion retailers saw sales slide by 0.6 per cent this week. Gift and beauty related stores reported lower activity following last week Valentine’s spike. There were also some signs that demand for luxury goods, although still up on last year, is beginning to peter out following an exceptionally strong start to the year.
• Fashion: 0.4%
  Sales bounced back this week, after two consecutive weeks of double-digit falls, with takings marginally up by 0.4 per cent. The half-term holiday helped drive footfall, with reports of strong demand for youth related ranges. The weather also played into the hands of some stores as it helped stimulate demand for new spring ranges. However, this positive picture was not universal, with some retailers still reporting negative sales.
• Homewares: -10.1%
  Although homeware results improved this week, sales remained negative compared to last year, down 10.1 per cent. Some stores benefited from half-term, which helped boost demand of textiles and household items, but sales of big-ticket items such as furniture declined.

Rupert Eastell, Head of Retail at BDO, says: “The first full week of normal spring weather saw retailers post mixed results. Overall, like-for-like sales marginally decreased (-0.6 per cent), with fashion the only sector witnessing higher sales assisted by stronger footfall levels due to half-term falling later this year.”

“The milder weather was also helpful in stimulating demand for new spring ranges. In other areas the majority of stores did not see any upturn. Non-fashion sales reverted back to negative territory, while homewares remained down by double-digit levels. In general there were widespread reports that consumers are continuing to favour value ranges in almost all areas, with demand for big-ticket items weak,” he continued.

Sales this week last year (w/e 24/2/08)
“This week last year the non-fashion sector (+7.4 per cent) was the only area to experience growth helped by strong demand for gifts and beauty products in the run up to Mothers Day. In contrast, fashion sales were beginning to show signs of stress with takings down 4.3 per cent, while homewares reported its weakest performance for six months with sales down 16.2 per cent,” concluded Eastell.

 
Source: BDO SH

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 Like-for-Like Club outlines weekly sales changes of more than 60 mid market retailers with some 4,500 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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