The beautiful sunshine seen throughout summer lent a much-needed helping hand to the retail industry, with consumers flocking to the high street to pick up summer staples. However, it appears that this positive trend is set to continue even as autumn sets in.
According to the British Retail Consortium (BRC), sales in August increased strongly throughout the UK retail industry when compared with the same period last year. Although there was a slight slowdown in growth from July, when the hot weather saw a rush for barbecue foods and outdoor furniture, Director General Helen Dickinson believes that the retail industry is well on its way to recovery.
She says; “While these figures don’t quite reach the lofty heights of what was an exceptional July, they’re keeping the good run going and are well above the 12 month average for sales growth.
“Taken hand in hand with a recent uptick in consumer confidence, the signs are that many of us are feeling a little more positive about the economic outlook and responding well to good deals and new autumn collections alike.”
The BRC – KPMG Retail Sales Monitor shows that, on a like for like basis, sales increased by 1.8 per cent when compared to the same period last year, while total sales climbed 3.6 per cent – a hugely positive year on year result as last August’s total sales grew by only 1.6 per cent. Online sales of non-food products were a particular driving force for change, with a huge 15 per cent jump from last August’s results ushering in the sector’s best results of the year so far.
Furniture and flooring made an impressive return to form during the month after sales fell during the summer, indicating that British consumers are keen to spruce up their homes in the lead-up to Christmas. At the other end of the scale, food sales posted the slowest growth – however, this has been put down to the tough competition from August 2012 when the Olympics were in full swing and consumers stocked up on party snacks and nibbles.
KPMG Head of Retail, David McCorquodale, believes that several consecutive months of positive results will bolster retailers’ confidence leading up to the Christmas sales period.
He says; “As summer fades to a close and the all-important approach to Christmas begins, retailers are turning their attention to their festive campaigns.
“However, if sales continue in this vein we should be optimistic that retailers will enjoy a reasonably healthy Christmas.”
Obviously, the return to school has also had a strong impact on retail sales this month as parents stock up on essentials such as uniforms and shoes. It remains to be seen whether this factor has biased autumn results, or whether September will yield yet another month of good results for the retail industry.
Do you think consumers have become more willing to spend this year overall, or has the good weather instilled a false sense of security?
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