Total sales fall by 7.5 per cent despite Valentine's Day impact

Sales figures from BDO’s Like-for-Like Club for the week ending 15 February 2009 were as follows:

  • Total Sales: -7.5%

Total sales on a like-for-like basis fell by 7.5 per cent as snow gave way to flooding.

  • Non-fashion: +3.2%

Non-fashion retailers saw takings grow by 3.2 per cent largely on the back of late demand for Valentine’s Day gifts.  However, given that sales dropped by over 8 per cent last week this recovery was more modest than expected.  Gifts and confectionery were the strongest performing sectors, while sales of beauty and leisure goods were largely down on last year.

  • Fashion: -10.6%

The vast majority of fashion stores had a bad week with overall sales down by 10.6 per cent.  There were very few positives with consumers cutting back on basic items as well as higher spend discretionary purchases.  In general, the only exceptions were specialist stores with strong Valentine offerings and formalwear retailers, although this was by no means universal.

  • Homewares: -12.0%

Against very tough comparatives last year (+16.2 per cent) sales were down 12 per cent with unhelpful wet weather for much of the week discouraging activity. However, some stores selling smaller household items did report relatively robust trade, while bigger ticket furniture sales also held-up quite well.


Rupert Eastell, Head of Retail at BDO, says: “This week’s results were generally disappointing, with sales largely failing to recover from the snow impact of last week.  A shift in half-term dates was also not helpful; while the usual mid-month lull in activity seems to have been more marked this month.  As a result, fashion results remained down by double-digit levels, while it was also a lacklustre week for homeware retailers.”

“Although a late surge in demand for Valentine gifts helped non-fashion retailers move back into positive territory, many stores still failed to recapture all of the lost trade from the previous week,” he continued.

Sales this week last year (w/e 17/2/08)

“In 2008, Valentine’s Day helped boost the performance of non-fashion retailers with sales growing by 8.1 per cent.  Homewares also experienced a very good week, with takings up by 16.2 per cent, on the back of mild weather and some significant promotional activity.  In contrast, fashion sales marginally declined,” concluded Eastell.

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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