May Retail News
Retail Sales in the UK during May 2006 rose by 3.6% on a like-for-like basis against May 2005 when sales had dropped 2.4%. The volume of retail sales in the three months from March 06 to May 06 was 1% higher than the previous three months; this increase is in comparison to only a 0.2% growth in 2005 and follows a zero growth in the three months to April 06.
The three-month trend of growth rose 2.7% in May from only 1.7% in April for like-for-like sales while total sales grew form 4.7% to 5.6%. Monthly figures show that for the forth-consecutive month, retail sales have increased with the growth between April and May was 0.5%. The total volume of sales in May 06 was 4% higher than in May 05.
MAY |
MARCH – MAY |
|||
Like-for-Like |
Total |
Like-for-Like |
Total |
|
3.6% |
6.2% |
2.7% |
5.6% |
|
|
|
|
|
|
The unadjusted value of retail sales was 2.1% higher than for the three-month period a year earlier. The average weekly value of sales in May 06 was £4.7 billion, 3% higher than in May 2005
Kevin Hawkins, Director of the British Retail Consortium said “The modest improvement in sales reported by some retailers reflects continued discounting, and while certain products are now in demand in anticipation of the World Cup, others remain heavily dependent on price cuts. Consumer confidence remains fragile and an increase in interest rates is the last thing that either consumers or retailers need.”
Helen Dickinson, Head of Retail, KPMG comments: “The results for May show substance to the improved conditions we have seen over the last couple of months. However, they must be read in the context of a wide divergence of performers at the top and bottom end of the scale and the current environment is exacerbating this trend. We are also beginning to see an uplift in certain categories in the build-up to the World Cup and more widespread promotional activity than was in place at this time last year. The fact that we are on the back of weak comparatives means that the news is not as positive as it may seem and we still need a few more months of improved figures to conclude that a fully blown turnaround in fortunes is in place.”
