Retail sales return to January levels

Sales figures from BDO’s High Street Sales Tracker for the week ending 12 April 2009 were as follows:

  • Total Sales: +7.9%

Total sales were up 7.9 per cent on a like-for-like basis – the strongest level of growth posted since the first week of January.

  • Non-fashion: +5.2%

Non-fashion retailers saw takings rise for a sixth consecutive week, which represents its best run for over 12 months. Many stores benefited from the Easter holiday, with gifting and luxury in particular maintaining the strong sales momentum of recent weeks. Demand for leisure goods also picked-up this week, while health and beauty demand was more subdued.

  • Fashion: +10.5%

Fashion retailers experienced a very good week with overall sales surging by 10.5 per cent, which was the fastest level of growth since the first week of the year. Like other retailers most stores benefited from the Easter calendar shift, with footwear and younger fashion brands the top performers.

  • Homewares: -10.5%

Despite the Easter break homeware sales dropped steeply this week with takings down 10.5 per cent. Whilst demand for smaller ticket purchases remained solid, sales of furniture, lighting and textiles decreased steeply possibly reflecting increased promotional activity from the larger DIY retailers.

  • Non-Store: +54.1%

Non-store sales rose very strongly for a second week in a row, with some stores seeing sales more than double, helped by the Easter holiday period.

Rupert Eastell, Head of Retail at BDO, says: “The Easter calendar shift helped boost sales this week with overall like-for-like sales rising by 7.9 per cent, which was the strongest level of growth posted since the first week of the year.  If sales continue to stay in the black, then April could see two consecutive months’ of positive growth - the first for more than two years.”

“Fashion retailers had a particularly good week with a strong uplift in takings – as did non-fashion stores who saw robust sales of seasonal gift assortments, as well as an upturn in leisure related demand. However, in contrast, homeware retailers had a surprisingly poor week, with sales falling by 10.5 per cent, not helped by the changeable Easter weather and strong competition from the larger DIY stores,” he concluded.

Sales this week last year (w/e 5/4/08)

Despite the cut in interest rates, ongoing concerns about the economy impacted sales this week last year, with only non-fashion stores (+13.5 per cent) reporting growth. Both Fashion (-6.3 per cent) and Homewares (-6.2 per cent) retailers saw sales decrease relatively steeply with consumers hesitant to spend on big ticket items.


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.

BDO LLP operates across the UK with over 3,000 partners and staff. BDO LLP is a UK limited liability partnership and the UK Member Firm of BDO International. BDO international is a world-wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity in its own country. The network is coordinated by BDO Global Coordination B.V., incorporated in The Netherlands, with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located. In the UK the Belfast Firm is operated by a separate Partnership known as BDO - Belfast.

BDO LLP and BDO - Belfast are both authorised and regulated by the Financial Services Authority to conduct investment business.

BDO is an award winning firm.  Recent achievements include:

• Best Workplace UK - Financial Times 2008
• Audit Team of the Year – Accountancy Age Awards 2008
• Tax Team of the Year – Accountancy Age Awards 2008
• Corporate Finance Deal of the Year – Accountancy Age Awards 2008
• 100 Best Companies to Work For - The Sunday Times 2008
• The Women of Achievement Award –  Women in the City 2008
• Business Superbrand - Business Superbrands 2008