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Thursday July 24th 2008

bssa sales monitor reveals independents feeling the worst of the downturn

British Shops and Stores Association (bssa) has announced the latest set of results from its quarterly Sales Monitor, which shows clear evidence that independent retailers are feeling the effects of the downturn to a greater degree than multiples, with three month like-for-like sales down 1.83% compared with a BRC figure of down 0.03% for the same quarter this year.

With the exception of Scotland , only London and the SE showed positive sales performance in the last quarter. This reinforces the evidence of the BRC London sales monitor.

The survey also reveals that after a positive performance by Department stores in the previous quarter, performance has dipped to minus 5.5% in the last quarter.

'It is of great concern that overall performance year to date is adverse by - 1.7% compared with last year,' comments bssa Chief Executive, John Dean. 'Superimpose above inflation increases in overheads and one can see the pressures many independent retailers face.'

Unlike the last quarter - January to March 2008 - where there was a definite market shakedown in effect, with clear winners and losers and very contrasting fortunes amongst different business types - only cards, crafts, stationery and hobby stores benefited from an increased performance this quarter, with books, toys and music stores faring particularly badly - down 7.5% - closely followed by department stores, but all other participating retailers experienced the same slump to a slightly lesser degree.

When comparing performance with the same quarter last year, 58% reported a drop at an average of -12.2% and it is the same story when it comes to performance for the financial year to date, compared with the same point last year. 55% of all respondents reported a lower performance with the same average decrease.

'Comments from respondents indicate that independent retailers are trying to counteract the effects of the downturn with deeper sales cuts impacting on margin. Store owners report that currency fluctuations are making trade difficult and unpredictable and that they are worried that increases in rents, wages, competition and 'red tape' encourages preparations for closure. Parking problems were also raised.

'These results indicate the serious predicament independent retailers currently face. Despite the dangers of increasing inflation, there is a strong argument to drop bank rate to stimulate the economy in the short term.'

Tagged as: bssa | sales monitor | brc

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