Heatwave helps sales
UK retail sales values rose 1.4% on a like-for-like basis and 3.2% on a total basis, from June 2008, when sales had been hit by cold wet weather,figures from the British Retail Consortium reveal..Food sales growth edged up further, helped by the heatwave. The hot sunny weather, together with clearance sales, also boosted clothing, footwear and outdoor leisure but big-ticket homewares and furniture sales remained diff icult.
Non-food non-store sales (internet, mail-order and phone sales) in June were 16.8% higher than a year ago, also benefiting from the heatwave and clearance sales.
Stephen Robertson, Director General, British Retail Consortium, said: "June's sunshine gave overall sales a much-needed boost."The heatwave helped food retailers and got customers buying outdoor goods, such as garden furniture, pools and picnicware.“Many clothing clearance sales coincided nicely with the upsurge in demand for summer wear that came from the good weather.
“But the sun knocked sales of big-ticket items, such as furniture and homewares, as people's attention focused on the outdoors. Given the uncertainty about jobs, customers are still nervous about spending on more expensive, non-essentials.”
Helen Dickinson, Head of Retail, KPMG, added :“Although overall sales performance continues to be driven by food, many non-food retailers had a better month in June. This was certainly true in clothing as a result of some early sales and promotions which benefitted children's clothing and footwear in particular. However, for non-food as whole, like-for-like sales remain in negative territory with furniture and floorings along with house textiles showing the largest declines. The gap between total sales performance and like-for-like continues to narrow, highlighting the reductions in new store openings in the current environment. Two years of negative like-for-likes at store level for many retailers is putting severe pressure on cash and profits.”
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