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Brexit delivers worst June in a decade for retailers

Published: 8 July 2016
The recent Brexit outcome had an immediate and devastating effect on the high street, according to a recent report by the BDO.

Brexit delivers worst June in a decade for retailers
The BDO High Street Sales Tracker recorded a -3.6% fall in year-on-year sales for June, making it the worst in 10 years. Sales of lifestyle goods were down -0.2% on June 2015 and fashion dropped by -4.9%.

Homewares sales saw a particularly bad blow, down -6% year-on-year. A strong start to June saw overall sales grow 3.8%, but what the BDO calls the "Brexit effect" hit retailers with increasing severity as the month wore on.

Sales reversed to a -3.1% drop in the second week and by the final week of June - two days after the 'leave' voters prevailed - overall year-on-year sales had plummeted -8.1%.

The gloomy results make June the fifth month in a row where the UK high streets saw negative growth. It was the first time in almost a year that all three sectors - lifestyle, fashion and homewares - recorded negative growth in the same month.

BDO LLP head of retail and wholesale Sophie Michael said: " Many retailers may have hedged against the falling pound for the short term, but if sterling stays at these levels, the cost of importing goods and further erosion to margin may need to be passed onto the consumer".

She urged, "It is even more important now for retailers to focus on their product offering and service. While reports suggest that average income has reached a historic high, the challenge for retailers is to convince consumers to spend their surplus income with them, amid the temptation of a post -Brexit spending paralysis."


08 July 2016 01:01:00
By bq bob
What rubbish, the appalling weather screwed sales, not brexit. Only the wealthy might have put off buying that new London pad, ordinary people have just got on with life, but the rain has killed sales of bbq's garden furniture and summer clothing! It's just scaremongering to blame brexit.

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