May sales fall back
Published: 29 June, 2009
The Springtime resurgence in retail sales ground to a halt in May as UK retail sales values fell 0.8 per cent on a like-for-like basis, according to the Retail Sales Monitor from the BRC and KPMG.
Food sales slowed after a strong Easter boost in April. Clothing and footwear fell below last May’s strong sales while big-ticket homewares and furniture sales remained difficult.
BRC director general Stephen Robertson said: “Sun and bank holidays don’t a recovery make. Warm weather and days-off produced some good performances for seasonal clothing and outdoor living products such as gardening goods and summer food and drink. But this May was always going to be difficult because the comparison is with strong May sales last year which delivered some of 2008’s best growth figures.
“The three-month average is up slightly overall but still well down on the rates regularly seen before the slowdown really hit retail a year ago. The latest negative results show Spring has been extremely difficult for most non-food retailers.
“The turnaround in sales of big-ticket items such as furniture and large electricals, which would indicate real change in the mood of customers, still eludes us.”
Helen Dickinson, head of retail at KPMG, said: “These figures may look disappointing after last month’s positive results were flattered by the timing of Easter, but extremely challenging market conditions, particularly for the non-food sectors, continue. Stronger sales last year – May was the last month to report positive like-for-like growth in 2008 – also impacted this month’s results.
“We might have expected better figures as, while there are consumers struggling financially due to actual, or the prospect of, job losses, there are also those with greater disposable income due to lower mortgage payments, easing inflation and lower fuel costs. It remains to be seen when those who have cash to spare will feel confident to start spending again.”





