With Britain finally basking in some long-awaited sunshine, it appears that the spirits of people across the country have somewhat risen. Yet it is not only consumers celebrating the glorious weather, as retailers have been given something to celebrate with the coming of the sun.
After two consecutive months in which the snow and heavy rainfall kept consumers firmly off the high street, the comparatively mild May allowed the spring/summer season to truly begin. As a result, the British Retail Consortium (BRC) has revealed that the industry has returned to growth, with like for like sales up by 1.2 per cent when examined against figures from May 2012.
According to the BRC, home improvements proved to be the driving force behind the mini-boom with consumers taking advantage of a wave of promotions on sofas, flat pack furniture and bedroom suites. Additionally, the clear skies and sunshine at the beginning and end of the month caused a spike in food sales, with barbecue meats, salads and ice creams proving particularly popular.
Helen Dickinson, director general of the BRC, praised retailers for their resilience in the face of factors such as unpredictable weather patterns and the prevailing gloom of the UK economy.
She said; “The signs are that temporary discounts and offers worked well to tempt shoppers into stores and clear some of the stock that had been slow to sell during the preceding months – this strategy paid off particularly well for furniture and flooring, May’s best performing category.
“Customers are still price-conscious but responding well to good deals, especially for big ticket items.
“But volatile economic conditions mean that this will remain a delicate balancing act for some time to come.”
Retailers will no doubt be pleased with this result, especially as the BRC- KPMG Retail Sales Monitor has recorded little good news over the past several months. Thanks to the unseasonable weather, sales in April fell at their fastest rate in over 12 months, sparking fears of a long-term contraction on the high street.
However, this return to growth has not only bolstered spirits but has also highlighted the benefits of internet shopping to still dubious retailers. Rather than being a direct competitor, the online marketplace simply topped up sales in May as well as providing an excellent platform for offloading surplus stock – allowing retailers to use their full floor space for new season stock.
Head of retail at KPMG, David McCorquodale, says; “While sales didn’t soar through the roof, this is still a very credible performance from UK retailers.
“To some extent retailers had their bacon saved by online sales, underlining the growing importance of the digital channel.”
Do you think that high street retailers will manage to continue posting positive results as the good weather (hopefully) settles in for the summer, or will the novelty of the sun wear off and see consumers returning primarily to the online marketplace?
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