Essential reading for retailers and suppliers in the home improvement market

Non-food sales show "modest improvement", says BRC

Published: 12 July 2011
Total UK retail sales went up 1.5% in June, decreasing 0.6% on a like-for-like basis - a better performance than expected after the month's spate of shop closures and administrations.
Non-food sales show 'modest improvement', says BRC
While food sales growth slowed a little further, non-food sales showed a modest improvement, according to the latest BRC-KPMG Retail Sales Monitor.

However, this improvement was driven by clearance sales starting earlier this year, which benefited homewares more than clothing and footwear, which people had bought during April's good weather. Consumer caution continued to hit big-ticket housing-related purchases.

BRC director general Stephen Robertson said: "Given June's spate of shop closure announcements and weak company results, these figures are not as bad as they could have been but it shows just how tough times are when total sales growth of 1.5% is regarded as not that bad. And remember, the higher VAT rate is making the year-on-year comparison look better than it really is, while retailers are coping with higher costs because of increased utility bills, rates and the burden of regulation."

For the DIY and gardening category, sales slowed after April's sun and bank holiday promotions had brought purchases forward. Indoor decorating was supported by the 'improve don't move' trend but gardening was hit by the cold, wet weather last month, particularly against last June's sun.

House textiles and home accessories picked up, helped by early clearance sales, said the report. Textiles in particular showed strong growth after four tough months.

Sale of furniture and floorcoverings also showed some improvement, but again this reflected clearance discounts and special offers rather than any upturn in underlying trade. Beds and bedroom furniture were "brighter spots", said the report, but fitted kitchens and bathrooms continued to suffer from consumer caution.

Garden furniture and outdoor living, such as picnicware and barbecues, struggled as many people had already bought during the warm weather in April.

Non-food non-store sales growth picked up a little during the month, with sales 11.5% higher than a year ago, compared with 10.4% in May, but against 18% in June 2010. Mr Robertson commented: "The long-term underlying expansion of online retailing goes on and sales are growing much faster than for store retailing but it isn't immune from customers' reluctance to spend."

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