Warmer weather boosts high street sales, says BDO

Homeware retailers experience highest L4L sales since July 2007

Sales figures from BDO’s High Street Sales Tracker for the week ending 22 March 2009 were as follows:

  • Total Sales: 2.6%

Total sales on a like-for-like basis grew by 2.6 per cent, bolstered by the changed date of Mother’s Day and the warmer weather.

  • Non-fashion: +5.6%

Non-fashion takings were 5.6 per cent higher this week compared to last year.  Demand for gifting and beauty products was strong, with the majority of stores in these areas reporting double-digit growth on the back of Mother’s Day.  In contrast, a number of outdoor and leisure retailers reported negative sales, however, results were not helped by the Easter comparisons.

  • Fashion: -0.4%

Fashion retailers had a mixed week with sales marginally down.  However, general results were still better than expected.  Whilst the loss of the Easter trade from this time last year hurt some stores, this was offset by stronger demand arising from promotional activity linked to Mother’s Day.  The improved weather was also a plus point for some, with stores selling footwear and accessories gaining the most.

  • Homewares: +16.6%

After months of predominantly negative figures, homeware retailers enjoyed a second consecutive week of positive results – the highest level of like-for-like sales growth for nearly two years, albeit the comparatives were weak.  Prompted by the improved weather DIY activity was popular, helping to boost demand for lighting, textiles and blinds. Furniture sales were also stronger than expected.

  • Non-Store: +65.6%

Non-store sales were especially strong (+65.6 per cent) this week, with the vast majority of mid-market retailers reporting accelerating growth via these channels. Clothing and gifting sales were especially buoyant.

Rupert Eastell, Head of Retail at BDO, says: “Bolstered by the warm weather and generous discounts in some areas, homeware retailers experienced a welcome improvement in sales – in fact it was the highest increase in like-for-like sales seen since July 2007.”

“Non-fashion stores also registered positive growth, helped by promotional activity linked to Mother’s Day.  Although fashion sales remained negative, results in many areas improved, with online sales remaining buoyant.  Overall the results were much better than expected,” he concluded.

Sales this week last year (w/e 22/3/08)
It was the earliest Easter for almost a century this week last year, which helped boost sales across both fashion (+4.3 per cent) and non-fashion (+9.8 per cent). In contrast, homewares sales decreased steeply (-15.6 per cent) as the cold weather deterred DIY activity in what is traditionally a strong week for homeware retailers.

Source: BDO High Street Sales Tracker

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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