BRC reports Retail growth of 1.4% in May

After two months of flat sales, May saw growth of 1.4% in line with the 12 month average of 1.5%, reports Helen Dickinson OBE, Chief Executive, British Retail Consortium.

As summer finally got underway, shoppers embarked on building their summer wardrobe as Helen explains:  “Clothing made a big comeback this month after suffering declines in April. This appears to be due to consumers waiting for just the right moment before embarking on their pre-summer spending. However, with signs that the UK’s economy is slowing it’s unlikely that this is the beginning of a complete reversal of fortunes. The uncertain outlook means that customers will remain cautious with their spending, therefore we expect sales figures to remain volatile for the time being.

“While this month’s pick-up in sales will come as a welcome relief, it’s still a challenging time for retailers. Shop price deflation continues and intensity of competition is fierce. Controlling costs and improving efficiency and productivity will be crucial for retailers as they continue to navigate increasingly tough trading conditions.”

David McCorquodale, Head of Retail, KPMG suggested that the warmer weather encouraged shoppers to take advantage of early promotions but that it was children who accounted for the standout results:

“The standout category, however, was children’s footwear, and children’s clothing also saw a boost as parents kitted out the kids for the warmer weather and half term holidays. Mild relief also continued for the Grocers with total food and drink sales remaining positive in the month.

“With a summer of sport kicking off in June and festival season getting underway, retailers will be hoping that the feel good factor coupled with a dose of summer sunshine will keep the tills ringing over the summer months.”

Food & Drink sector performance: Joanne Denney-Finch, Chief Executive, IGD is hoping that  Euro 2016 will impact on the sales of food and drink: 

“There is further cause for optimism. Big international football tournaments are usually good for food and drink sales and this time there are three UK teams to support.”

Full report can be found at BRC