Upturn continues into summer
On a like for like basis, sales in June rose 2.3% against a week June 05 when sales dropped 0.5% The total volume of retail sales in the three months to June 06 were 2.1% higher than the three previous months which is the highest monthly growth seen since February 04.
Monthly figures show that there was a 0.9% increase between May & June in sales volume which was the fifth successive month-on-month increase.
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The world cup had a positive impact on the sales of beer, large TV’s, sportswear and food but days in which England were playing sales levels dropped. The summer weather has also boosted sales in the food, DIY and gardening sectors but following an improvement in May sales in clothing and footwear dropped.
The average weekly value of sales in June was £4.8 billion which was 3.7% higher than June 05 but with consumers still pessimistic about personal finances and reluctant to commit to major purchases, housing-related and big-ticket items remained largely discount-driven.
JUNE |
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APRIL – JUNE |
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Like-for-Like |
Total |
Like-for-Like |
Total |
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2.3% |
4.7% |
4.1% |
6.8% |
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Kevin Hawkins, Director General, BRC said: “Despite the boost from the World Cup, warmer weather, and some early clearance sales, June was not as good as May. Also this performance is being compared with a weak June 2005. Although the gain is indeed encouraging, much of the growth, especially in housing-related sectors, remains discount-driven. Consumer confidence is still fragile and retailers will be hoping factors beyond their control do not weaken it further.”
Helen Dickinson, Head of Retail, KPMG comments: “Enhanced food and drink sales on the back of the World Cup have been the driving force behind the June sales performance. Our ability to enjoy the 'festival of football' has offset any downside arising from lower customer traffic in key centres during the high interest matches. The level of promotional activity in non-food continues to outpace last year and hence the impact on margins will be felt widely across the sector as the year progresses. In the immediate future though, after a month which will have polarised retailers’ fortunes like no other, it’s a case of retailers needing to get back to business as usual.”
