Spending under pressure on the High Street

The exceptionally warm weather and the World Cup discouraged high street sales, according to accountants and business advisers BDO LLP. Figures from BDO’s High Street Sales Tracker for the week ending 27 June 2010 show overall, like-for-like sales increased by 0.1 per cent on the same week last year (- 7.8 per cent).

Don Williams, Head of Retail at BDO LLP commented:

“The downward sales momentum continued as a second week of summer discounting largely failed to stimulate significant new demand. Whilst we are not expecting sales to go into permanent reverse, especially now that the VAT increase has been deferred until 2011, there might be a further weakening as comparisons become more difficult to beat in the coming weeks.”

Non-fashion -1.0%

Takings dropped into negative territory for the first time in over a month. Demand for outdoor goods and gifts were both notably weaker, while leisure and luxury were also poor.

Fashion +1.5%

Fashion retailers had a fairly bad week due to shoppers’ attention concentrated on the World Cup, coupled with clearance competition from department stores.

Homewares -10.7%

Demand was slow with sales failing to exceed last year’s depressed levels. Furniture and textiles were especially weak, while demand in other areas was also quiet.

Non-store (mail order, online etc) +19.5%

Non-store sales softened considerably with takings growing at their slowest rate since January, with home related purchases especially frail.

-Ends-

Notes to Editors

About BDO

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