Mid-sized retailers see slight uptake in September but gains remain unconvincing
Mid-sized retailers reported a marginal uplift in high street takings during September, according to the latest edition of the BDO High Street Sales Tracker.
Overall sales increased by 0.1 per cent on a like-for-like basis, the best performance since Easter, with strong non-fashion sales. However, this positive picture was by no means universal. A good number of retailers did not report an upturn, with both fashion and homeware sales remaining below levels achieved last year.
Although takings did start to become more positive during the second half of the month, this was more of a reflection of the very weak comparisons post the Lehman’s collapse, rather than a material pick-up in demand.Don Williams, head of Retail, BDO LLP commented: “Although positive, these results are a touch disappointing with signs that demand is not recovering as fast as previously thought. The status quo is being maintained, but there has not been a material improvement.
I feel reasonably optimistic but meaningful recovery still seems some way off as many retailers are having to rely on discounting in order to stimulate sales.” he added.
Fashion: -1.7%
Fashion retailers saw takings drop for a fifth consecutive month, with like-for-like sales down 1.7 per cent. The new season boost from fresh autumn/winter ranges was largely undermined by fine weather, as well as reduced levels of discounting compared to last year.
Non-fashion: +5.4%
Non-fashion like-for-likes increased by 5.4 per cent. Demand was up in most categories, with stores focusing on luxury, outdoor and leisure related goods posting the strongest gains.
Homewares: -2.8%
Homewares retreated into negative territory, following positive results in July and August, with like-for-likes falling by 2.8 per cent. Positive sales of small ticket items, such as cookware and textiles, were pretty much cancelled out by poor furniture sales.
