The collapse of Comet on Friday provides a stark reminder that, despite an improving economic outlook, the climate remains frosty for retailers. This year has seen a crop of leading high street names entering administration. These include JJB Sports, Clinton Cards, Blacks Leisure, Game and Peacocks.
This has left suppliers unpaid, staff out of work and a growing number of unoccupied retail properties blighting our town centres. Today M&S chief Marc Boland is expected to add to the gloom surrounding the sector by announcing that like for like fashion sales for the chain remain flat and that pre-tax profits are down by around 10 per cent.
However, it isn’t all bad news as new figures suggest that the recent cold snap has provided a boost to the high street as shoppers rush to stock up on winter fashions. The BDO High Street Sales Tracker shows that year on year sales rose by 0.9 per cent in October largely due to a demand for outdoor clothes.
The Tracker follows the weekly sales of around 10,000 stores located on high streets throughout the UK, providing a reliable indication of underlying retail trends and overall trading conditions. The figures also show a leap of 40.4 per cent in non-store sales and an increase in retail confidence as Christmas approaches.
Don Williams, head of retail and wholesale at BDO, said; “We’ve learned to live with austerity for five years, but consumers have shown they will not sacrifice Christmas.
“Now indicators are suggesting the economy will improve in 2013, this will hopefully feed into consumer confidence over the next two months.”
A recent survey by the CBI also provides good reading for retailers and high street watchers. The figures reveal that 47 per cent of retailers have reported a rise in sales compared to the same period last year.
While many analysts warn that the underlying economic conditions remain weak, retailers are certain to be encouraged by these findings as they gear up for the busiest month in the retail calendar.
Previous Post
Retro Toys Top Christmas Wish List
