Sunshine sparks sales surge
Published: 15 July, 2010
The BRC/KPMG Retail Sales Monitor showed an improving picture in June 2010.
UK retail sales values rose 1.2 per cent on a like-for-like basis from June 2009, when sales had picked up 1.4 per cent, helped by the heatwave in the second half of the month. This June was slightly less hot, but sunny for most of the month. On a total basis, sales were up 3.4 per cent against a 3.2 per cent increase in June 2009.
Food sales growth was about the same as in May, thanks to the hot weather and World Cup. Clothing and footwear sales growth slowed, as many people had already bought in May’s sun. TVs benefited from the football and outdoor DIY and leisure improved in the sun, but at the expense of indoor homewares.
Non-food non-store sales (internet, mail-order and phone sales) in June were 17.3 per cent higher than a year ago, down from 21.9 per cent in May. But June’s gain was against a similar increase in June 2009, while May’s gain was against a weak May 2009.
Stephen Robertson, Director General, British Retail Consortium, said: "This is decent sales growth, mainly explained by good weather and earlier summer clearances. The performance is better when you remember the comparison is with a similarly strong performance in a sunny June a year ago.
"Barbecue products, salads and ready meals were in big demand. In non-food retailing it was a mixed picture. TVs were really the only football-related item that generated significant spending. Other items, flags and souvenirs, were high profile but relatively low value. Most of the time, minds were outdoors. Homewares and indoor DIY lost out. Garden goods did better. Summer clothing sold less well than the weather might suggest because many people had bought when the sun first arrived in May.
"The Budget is affecting confidence but it won't be until the impact of the measures is actually felt that it really hits spending.”
And KPMG’s head of retail Helen Dickinson said: "Trundling along is an apt description for this month’s sales. While the World Cup did impact performance on individual days and provide a welcome uplift for some, it did not shift overall spending patterns much one way or the other. Despite the good weather clothing and footwear did not do as well as in May – and men’s continues to underperform. Furniture and floorings had a better month, although against poor comparatives. While the emergency Budget has delayed any impact of the VAT rise until later this year/early next, the effect of the wider fiscal tightening measures on consumer spending remains to be seen. The risk is all on the downside."
Looking at individual sectors, BRC senior analyst Joscelyne Hynard said: “Having improved in May’s sunny spells, clothing sales showed only marginal growth in June, but this was against a good gain in last June’s hot weather. Overall, childrenswear continued to outperform adult’s clothing, being seen as more essential, while men’s and women’s lagged.
“Having bought summer clothes in May, and faced with continued uncertainty about jobs and incomes, people were more cautious about buying, though good deals and clearance discounts attracted many. Lightweight knits, T-shirts and tops, dresses, shorts and swimwear all sold well but knitwear, trousers and jackets were more difficult. Accessories were mixed, with jewellery, handbags and sunglasses good for some but marked down for others.”
And she added: “Overall footwear sales growth was weaker than in May but against a stronger comparative a year ago. Children’s improved, to show stronger gains than for men’s and women’s, which both slowed after picking up in May.”
