Essential reading for retailers and suppliers in the home improvement market

Flooring shines as May boosts retail sales

Published: 4 June 2013
Retailers across the board enjoyed sales growth in May, with furniture and flooring the star category, according to figures released today by the British Retail Consortium.
Flooring shines as May boosts retail sales
The value of all retailers' sales was up 1.8% on a like-for-like basis from May 2012, when they had increased 1.3% on the preceding year, and on a total basis they put on 3.4%, the same figure as last May. That growth was above the three-month average of 2.3% and the long-term 12-month average of 2.5%.

But it was furniture and flooring that really shone, being the best performing category in May for the first time since January 2011. It seems the changeable weather discouraged some shoppers from going out and spending on clothes. Instead they saw home improving as a better use of their money, says the BRC. Sofas and flat-packs were popular items, together with bedroom furniture.

The first May Bank Holiday weekend enjoyed some sunshine, which also helped sales of garden items. Practical tools like pressure washers and garden tools were the most sought-after but the lack of prolonged good weather resulted in just average seasonal sales of outdoor furniture and barbecues.

Sales of home accessories picked up a little from April, benefiting from the weather-related 'stay-at-home' trend that boosted furniture and flooring, but it still ended as the worst performing category.

Commenting on the figures, BRC director general Helen Dickinson said: "Retailers pulled off a good result in May despite contending with topsy-turvy temperatures and continued economic difficulties. The first month since February to be free of Easter timing distortions showed positive total growth in every category and overall growth well above the 12-month average.

"May was a month of two halves for weather, meaning that retailers had to stay one step ahead when planning their promotional activity. The signs are that temporary discounts and offers worked well to tempt shoppers into stores and clear some of the stock that had been slow to sell during the preceding months. This strategy paid off particularly well for furniture and flooring, May's best-performing category.

"The signs are that retailers read conditions well in May and adapted their offer accordingly. Customers are still price-conscious but responding well to good deals, especially for big-ticket items. But volatile economic conditions mean that this will remain a delicate balancing act for some time to come."

Online sales in May were up 11.0% from May 2012, when they had risen by 12.4%. They were helped, said Ms Dickinson, by "a skilful mix of deals and discounts as part of [retailers'] evolving omnichannel offer in-store and online, whether it's social media promotions that reward loyal customers or discounts for collecting goods in-store when you buy through the website. This respectable growth suggests that customers are responding well."

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