Tag Archives: Helen Dickinson OBE

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BRC: UK retail sales in September increased by 1.9% on a like-for-like basis from September 2016

LONDON, UK, 2017-Oct-12 — /EPR Retail News/ — Covering the four weeks 27 August – 30 September 2017

  • In September, UK retail sales increased by 1.9% on a like-for-like basis from September 2016, when they had increased 0.4% from the preceding year.
  • On a total basis, sales rose 2.3% in September, against a growth of 1.3% in September 2016. This is above the 3-month and 12-month averages of 2.1% and 1.7% respectively.
  • Over the three months to September 2017, In-store sales of Non-Food items declined 1.5% on a Total basis and 2.0% on a Like-for-like basis.
  • Over the three months to September, Food sales increased 2.5% on a like-for-like basis and 3.5% on a total basis. This remains above the 12-month Total average growth of 2.9%, the highest 12-month average since August 2013.
  • Over the three-months to September, Non-Food retail sales in the UK increased 0.5% on a like-for-like basis and 0.9% on a total basis, above the 12-month Total average growth of 0.7%.
  • Online sales of Non-Food products grew 10.7% in September, above both the 3-month and 12-month averages of 10.0% and 8.8% respectively. Online penetration rate increased from 21.5% in September 2016 to 22.4% in September 2017, the highest penetration rate since January.

 

Helen Dickinson OBE, Chief Executive | British Retail Consortium

“September saw a second consecutive month of relatively good sales growth which should indicate welcome news for retailers and the economy alike. Looking beneath the surface though, we see that much of this growth is being driven by price increases filtering through, particularly in food and clothing, which were the highest performing product categories for the month. Retailers have worked hard to keep a lid on price rises following the depreciation of the pound, but with a potent mix of more expensive imports and increasing business costs from various government policies, something had to give at some point.

“From a consumer perspective, spending is still being focussed towards essential purchases; with consumers buying their winter coats and back to school items, but shying away from big ticket items such as furniture and delaying the renewal of key household electrical goods.  Online has been the biggest beneficiary of the resilience in consumer spending capacity in the last two months, sustaining a return to double digit year on year growth figures as shoppers responded well to discounts and the ongoing investment by retailers in improving the mobile shopping experience.

“September’s overall growth may increase the likelihood of an uplift in interest rates in November. So with stronger headwinds brewing, its vital government keep a tight lid on those costs under its control, which impact on retailers, the cost of doing business and ultimately consumers. The Chancellor has a great opportunity to do just that in his upcoming budget by not adding yet another rise on the business rates bill of every retailer in the country.”

Paul Martin, Head of Retail | KPMG UK

“September’s performance will have left many retailers with smiles on their faces, with sales up 1.9 per cent on a like-for-like basis, compared to last year.

“Children’s clothing clearly hit the mark as one of the leading categories in the month, whilst the August bank holiday and favourable autumnal weather lent a helping hand to non-food sales. Grocers will also be feeling the warmth having performed particularly well, as food and drink remains in high demand with shoppers – although food price inflation continues to be a key driver of this growth.”

“Non-food online sales continued to soar with double digit growth, outpacing the uptick seen on the high street.

“However, with potential interest rate rises on the horizon, shaky consumer confidence and ever increasing levels of household debt, uncertainty remains. We’re now moving into the final quarter, which will ultimately define whether 2017 has been a good or bad year for retailers.”

Food & Drink sector performance | Joanne Denney-Finch, Chief Executive | IGD

“September was a consistently strong month for food and grocery sales with little variation from week to week. This extends the good run from spring into autumn, albeit driven more by rising prices than volumes.

“After several months of inflation, a growing number of people are taking more time to hunt down value. Just under half (46 per cent) of shoppers now say they usually look for the cheapest products, even if it takes more time, versus 40 per cent in March.”

SOURCE: British Retail Consortium

BRC Press Office

  • TELEPHONE+ 44 (0) 20 7854 8924
  • EMAIL media@brc.org.uk
  • OUT OF HOURS+44 (0) 7557 747 269
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BRC analysis spells out potential cost to shoppers of leaving the EU without a tariff-free trade deal

London, 2017-Sep-19 — /EPR Retail News/ — The outcomes of the Brexit negotiations are hugely important to the UK’s retail and food production industries. The UK is a net importer of food – 40 per cent of the food we eat comes from outside the UK, with around a third from the EU-27 alone. In comparison, only 12 per cent of the UK’s non- food imports come from the EU. People in the UK spend around £201 billion a year on food and non-alcoholic drinks.

In April the BRC’s Tariff Roadmap highlighted the need to put UK consumers at the heart of the Brexit negotiations to protect them from the costs of unwanted new tariffs, particularly when it comes to food bills.

Modern food retail relies on complex but responsive supply chains to ensure that customers get the products they want year round, at consistently good quality, and at competitive prices. This is dependent upon us being able to source food across national borders to supplement food production in the UK, without tariffs and unaffected by non-tariff barriers to trade. The alternative, a no-deal Brexit, would mean defaulting to a system which could raise food tariffs by 22 per cent on average.

Helen Dickinson OBE, Chief Executive of the BRC said:

“At a time when household income is already squeezed by inflation and wage growth moving in opposite directions, it’s of the utmost importance that the Government does all it can in the trading negotiations, to limit any further cost increases that could further adversely impact the finances of the UK’s consumers.”

The Tariff Roadmap makes the case for transitional measures to ensure that tariff-free trade continues after the UK’s exit from the EU in March 2019. This is important to avoid rising costs and provide greater certainty for consumers and businesses. Achieving as frictionless trade as possible with the EU will help to keep prices down and maintain greater choice and food security for consumers. Perishable food has a short shelf-life and getting it through the food supply chain in a timely manner requires as little disruption as possible at every stage of the process, including at our ports.

Avoiding a no deal Brexit is key. The BRC will work with government to secure a fair Brexit for consumers by ensuring prices remain low and choice and confidence remains high.

Read IFS Study: How might Brexit affect food prices?

Source: BRC

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BRC: Overall Shop Price deflation was 0.3 per cent in August

London, 2017-Aug-30 — /EPR Retail News/ —

BRC – NIELSEN SHOP PRICE INDEX – August 2017

Period Covered: 07 – 11 August 2017

  • Overall Shop Price deflation was 0.3 per cent in August, a slight deceleration from the 0.4 per cent fall in July. Except for June of this year, this is the shallowest deflation rate since November 2013.
  • The deflation rate for prices of Non-Food products was 1.3 per cent, the slowest rate of deflation since April 2013. Electronics posted the slowest rate of deflation on record (the SPI started in 2006).
  • Food prices increased by 1.3 per cent in August on the same month last year, a slight increase on July, when Food price inflation stood at 1.2 per cent.
  • This is the second month we have seen an easing in the inflation rate of Fresh Food. It slowed to 0.8 per cent in August from 1.0 per cent in July.
  • In contrast, the inflation rate of Ambient Food prices accelerated to 1.9 per cent in August from 1.6 per cent in July. This is the highest inflation rate for Ambient Food since December 2013.

Helen Dickinson OBE, Chief Executive, British Retail Consortium:

“Non-Food deflation reached its lowest rate in more than four years in August as overall Shop Prices edged closer to inflation.

“The reality is that with protection from hedging policies coming to an end, Non-Food retailers are running out of options for protecting shoppers from the significant increases in the price of imported goods since the EU referendum in June last year. We expect Non-Food prices to continue trending towards year on year inflation.

“Food inflation also moved upward, driven by an acceleration of Ambient Food inflation, although the slowdown in Fresh Food inflation for a second month kept a lid on overall increases in the price of the weekly grocery shop. The seasonal availability of fruit and vegetables from UK suppliers is currently shielding shoppers from the impact of higher import prices. However, as Winter approaches and our dependence shifts to imported goods, that will change.

“While the dynamics of individual elements of the index play out in different ways from month to month, the fact is that the overall pressures on prices are still weighted upwards. That will put an increasing strain on already stretched family budgets. Therefore, it is imperative that the Government puts the UK’s households at the top of its agenda as it enters into negotiations on our future trading relationship with the EU. It should do all it can to avoid a situation where further tariffs and administrative costs lead to price increases on top of those already being faced by consumers.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

” Food inflation continues to be kept in check by lower increases in fresh and seasonal  foods and as fresh is typically over 40% of the shopper spend in supermarkets, this is helping to offset the rising cost of living in household bills. Whilst consumer sentiment is on the turn and shoppers are becoming cautious about spending on big ticket items, prices are still very competitive on the high street and spend on food and drink has been strong over the summer, albeit disrupted by the changeable weather in August ”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC: Footfall in June was 0.8% up on a year ago

London, 2017-Jul-17 — /EPR Retail News/ —

BRC – SPRINGBOARD FOOTFALL AND VACANCIES JUNE 2017

Covering the four weeks 28 May – 1 July 2017

  • Footfall in June was 0.8 per cent up on a year ago. leaving it ahead of the three month average of 0.5 per cent.
  • On a three-month basis, footfall grew 0.5 per cent, a slight reduction against past two months of 0.7 per cent
  • High Street footfall rose 0.9 per cent in June on the previous year’s rate of -3.7 per cent. This is 5 basis points above the three month average of 0.4 per cent.
  • Footfall in Retail Park locations grew by 2.3 per cent in June, compared to a 1.0 per cent decrease in June 2016. This comes after a 1.5 per cent rise in May, and is below the three-month average of 2.2 per cent.
  • Footfall in Shopping Centres fell by 0.8 per cent in June on the -2.3 per cent rate in June 2016. This is marginally above the three-month average of -0.9 per cent.

Helen Dickinson OBE, Chief-Executive | British Retail Consortium

The arrival of summer spurred greater shopper footfall in the majority of retail destinations in June. High streets and retail parks saw solid growth in footfall, as shoppers headed out to renew their wardrobes and purchase other seasonal items. Most parts of the UK benefitted from these sun fuelled shopping outings, with the East of England especially witnessing brisk growth.

Amidst economic uncertainty and mounting concern over the inflationary squeeze on household incomes, sustaining growth in shopper footfall will be challenging, more so as retailers seek to convert that into an improved performance at tills. And while they step up their efforts to keep prices down for their customers against rising input prices and inflation, the Government can help alleviate the cost pressures in the immediate term by sticking to their commitment on business rates reform to deliver a system fit for purpose in the 21st century.

Diane Wehrle, Springboard Marketing and Insights Director

The rise in footfall of +0.8% in June is a result that tells a different story to the sales statistics we are seeing, with the Springboard Sales Tracker recording drops in sales in department stores of -1.6% and of -2.3% in fashion stores.  However, sales do present a very varied picture, dependent on the breadth of the measure used and inflationary pressures which push sales values up.

The uplift in footfall in June, compared with the -1% drop in May, and its divergence from sales, can be attributed to a number of factors. The weather was far better than in June last year, which encourages consumers to visit bricks and mortar destinations, particularly external environments such as high streets and retail parks. Also in recent months, we have seen rising footfall in the hours after 5pm, illustrating the trend in consumer behaviour towards leisure trips after retail trading hours, demonstrated by the rise in hospitality sales of +0.3% in June.  In June, however, the better weather supported the increase in footfall during daytime hours. Indeed, the cumulative impact of both these factors accounts for the weaker footfall performance in shopping centres compared with high streets and retail parks.

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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British Retail Consortium: Shop prices in June edged closer to ending a four-year deflationary trend

London, 2017-Jul-05 — /EPR Retail News/ —

BRC – NIELSEN SHOP PRICE INDEX – JUNE 2017

Period Covered: 05 — 09 June 2017

  • Overall shop price deflation was 0.3 per cent in June, a slight deceleration from the 0.4 per cent fall in May. This is the shallowest deflation rate since November 2013.
  • The deflation of non-food products was 1.4 per cent, comparable to May’s deflation of 1.5 per cent and April’s of 1.4 per cent.
  • Food prices increased on average by 1.4 per cent in June, a similar pace to the 1.4 per cent May increase and the highest since January 2014.
  • Fresh food prices seem to be on an upward trajectory, recording a 1.4 per cent increase in June, 0.2 percentage points higher than in May. This is the highest increase since February 2014.
  • Ambient food inflation stood at 1.5 per cent in June, a slowdown from the 1.8% increase in May.

Helen Dickinson OBE, Chief Executive, British Retail Consortium:

“Shop prices in June edged closer to ending a four-year deflationary trend, as feed-through from the depreciation of the pound and rising commodity prices continues.

“The fact that the headline number, -0.3 per cent, shows that prices are still down on last year should not be misunderstood. The year on year numbers belie the fact that prices have been heading upwards for the last six months; it’s just that significant deflation in the second half of 2016 means there has been considerable ground to make up in the year on year figures.

“Although heading upwards, the speed of price increases was checked in June. Food price inflation was steady on last month, albeit in firmly positive territory; whilst varied performances in the non-food categories netted out to a slight reduction in deflation.

“The steadying of inflation in June is likely a brief hiatus; resulting from the interplay of short term influences on pricing, such as good weather delaying mid-season promotions into June and the longer term competitive pressures constraining the pass through of all costs. We expect shop price inflation to continue trending upwards in coming months.

“The reality is that cost pressures faced by retailers continue to mount. These pressures arise both from market driven increases in the underlying cost of goods and as a result of Government policies. There is a limit to the ability of retailers to protect consumers by absorbing these impacts into their margins, as a result further price increases are inevitable. With that in mind and with the UK’s trading relationships under discussion, it’s of the utmost importance that the Government does all it can to limit any further cost increases that could further adversely impact the finances of the UK’s consumers.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

“With inflation rising in essential goods and services, many households are now seeing their monthly household expenditure come under pressure.  Whilst this may add to the uncertainty around discretionary spending, the good news is that shop prices are increasing at a slower rate. Shoppers are also able to find further savings in retail with low price strategies across the grocery sector and competition across the marketplace keeping prices as low as possible.“

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC appoints William Bain to accelerate its research and further strengthen its voice on Brexit

BRC appoints William Bain to accelerate its research and further strengthen its voice on Brexit

LONDON, 2017-Jun-30 — /EPR Retail News/ — The British Retail Consortium (BRC) has appointed William Bain to accelerate its research and further strengthen its voice on Brexit.

Bain’s previous experience includes five and a half years as a Member of Parliament, during which he served as Shadow Food and Farming Minister, and was a member of the BIS Select Committee working on inquiries which focused on trade issues. Since leaving Westminster, he has worked as a consultant to companies on the implications of Brexit. He is reporting to Andrew Opie, the Director of Food Policy at the BRC.

Bain will work on the BRC’s Fair Brexit For Consumers campaign, which is aimed at supporting the Government in ensuring a fair deal for consumers in negotiations with the EU.

The BRC’s recently published research advocated a “smart Brexit”. Its Tariff Roadmapmade the case for an orderly and sequenced process that prioritises across the board tariff-free arrangements with the EU before securing new trading relationships with the rest of the world. The research found that:

  • Retailers directly import approximately £5 billion of food products and indirectly import approximately £15 billion through wholesalers or manufacturers;
  • The weighted average tariff, if the UK were to default to WTO tariffs on UK food imports from the EU, would be 22 per cent;
  • New partners in the rest of the world present a big opportunity as nearly half the UK’s non-food imports come from countries where there is no pre-existing EU trade arrangements. If new deals were negotiated with these countries, UK retailers could see reductions in tariffs on clothes of 12 per cent and leather handbags at three per cent, for example.

 

Commenting on the announcement, Helen Dickinson OBE, Chief Executive of the British Retail Consortium said:

“The retail industry’s biggest priority is to work alongside the Government to secure a fair Brexit for consumers. This means ensuring that ordinary shoppers aren’t hit with the cost of unwanted new tariffs and the UK is able to build new trading relationships with the rest of the world in the long-term. William’s experience and skills will further strengthen the BRC’s voice on crucial trade and regulation issues during a pivotal period of time.”

William Bain said:

“The retail industry is at the epicentre of the changes ahead arising from the UK’s transition to a new relationship with the European Union involving some of our biggest markets and industry supply chains. I’m thrilled to be part of the BRC’s pioneering work as the voice of the industry at such an important time for UK businesses and consumers.”

 

Notes to Editors

  1. View BRC’s ‘Tariff Road Map For The Next Government here. It includes a digestible ‘road map’ highlighting the need for an orderly and sequenced process that will ensure risks are mitigated and opportunities are seized, a breakdown of food imports and non-food imports by retailers and a map that illustrates the UK’s trade relationships, tariffs and the potential threats and opportunities around different products.

SOURCE: BRC

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BRC: Footfall in May fell by 1.0 per cent in the UK on the same month in the previous year

London, 2017-Jun-12 — /EPR Retail News/ —

BRC- SPRINGBOARD FOOTFALL AND VACANCIES MONITOR – MAY 2017
Covering the four weeks 30 April – 27 May 2017

  • Footfall in May fell by 1.0 per cent in the UK on the same month in the previous year, the first decline since February.
  • This is below the three-month average of 0.7 per cent. This month’s positive three-month average makes two consecutive months of three-month average growth, the first time this has occurred since June-August 2013.
  •  High Street Footfall declined in May, the fall of 2.0 per cent its steepest decline since June. This is below the three-month average of 0.8 per cent.
  • Footfall to Retail Park destinations grew by 1.5 per cent in May, below the three-month average growth rate of 1.8 per cent.
  • Shopping Centre Footfall fell by 1.3 per cent in May, below the three-month average of -0.5 per cent.

Helen Dickinson OBE, Chief-Executive | British Retail Consortium

“After the Easter boost in shopper numbers to retail destinations, footfall fell in May, which was mirrored in the month’s sales performance. But it wasn’t just shops that suffered; poor weather at the beginning of the month kept people indoors and made it a poor month for footfall in general with fewer people out and about.

“The biggest movement was noticeable in the number of visitors to the high street, which after several months of growth, saw the steepest decline since June last year.  In an uncertain economic climate, retailers will be looking to the next Government to deliver on their commitment to fundamental reform of business rates; to implement a more sustainable system that allows for growth and investment.”

Diane Wehrle, Springboard Marketing and Insights Director

“May was clearly a month of moderation for UK shoppers, with a -1% drop in footfall across all destinations, and a -2% drop in the high street. The slowing of growth in footfall post 5 pm to +1.1% in May from +3.5% in May 2016 reflects this moderation, suggesting fewer shoppers opted to stay longer and eat out after their shopping trips; a concern for retail locations that have focussed on expanding their food offer to grow shopper dwell time.  The drop in footfall was mirrored by a drop of -3.7% in UK sales as measured by Springboard’s sales index which tracks sales in bricks and mortar stores – with fashion spend in particular dipping in May.  These are clear signals that consumers have started to display greater spending restraint.

“Whilst May’s footfall decline didn’t show a dramatic drop overall, the result for high streets was the worst result since June 2016 when high street footfall declined by -3.7% in the wake of the EU Referendum.  However, April’s results were boosted by the shift in Easter from March in 2016 to April this year, so it is unsurprising that there was a downward shift in footfall from last month, particularly as UK consumers could feel additionally cautious in the lead up to the General Election.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC Chief Executive: The slowdown in overall non-food sales was mirrored online in May as annual growth fell to its lowest on record

London, 2017-Jun-06 — /EPR Retail News/ —

BRC – KPMG ONLINE RETAIL SALES MONITOR MAY 2017

Covering the four weeks 30 April – 27 May 2017

  • Online sales of Non-Food products in the UK grew 4.3% in May compared to 13.7% rise a year earlier. This is the lowest growth since December 2012.
  • Over the 3 months to May, Online sales of Non-Food products in the UK grew 7.0% year-on-year, the lowest in the BRC series started in December 2012.
  • In May 2017, Online sales represented 22.1% of total Non-Food sales in the UK, against 21.2% in May 2016. On a 3-month basis, penetration rate was 21.9%.
  • Over the 3 months to May, Online sales added 1.3 percentage points to the year-on-year growth of Total Non-Food sales. In contrast, In-Store sales made a negative 3-month contribution of 1.2 percentage points. In May, Online sales contributed 0.9 percentage points to Non-Food growth.
  • Over the 3 months to May, In-Store sales fell, posting declines of 1.8% on a total basis and 2.3% on a like-for-like basis. For the month of May, In-Store sales declined by 4.4%, a striking decline, the sharpest decline since the BRC series started in December 2012.

Helen Dickinson OBE, Chief Executive | British Retail Consortium said:

“The slowdown in overall non-food sales was mirrored online in May as annual growth fell to its lowest on record. Though sales in all categories but one saw growth, this was subdued as consumers held back on non-essential purchases.

“Where there is willingness to spend on non-food items, this is largely concentrated on value-lines. The clothing and beauty categories in particular were boosted by some late season promotions, which looks promising for those retailers who will be launching their mid-season sales this month.

“For the second consecutive month, the increase in the online penetration rate has remained below one percentage point. Retailers will be increasingly looking to innovate and optimise their online channels to convert a greater share of online browsing into sales.”

Paul Martin, UK Head of Retail | KPMG said:
“Whilst non-food online sales continue to deliver growth, the significant news is that this month’s year-on-year growth is the lowest recorded since our online retail sales monitor began back in December 2012. Broadly speaking, most categories noted a rise, but growth had clearly been muted due to shoppers clawing back on non-food purchases.

“Bucking the general trend, health and beauty products continue to be the rising star, with holiday season, sunshine and hay fever likely to be fuelling this growth. Elsewhere, the more seasonal weather in the month is likely to be behind fashion sales performing better.

“With such meagre growth in online sales in May, it is vital online retailers master the art of customer-centricity and personalisation. Ensuring the right products are available at the right time, and that surplus stock is not sold at significantly reduced prices, is becoming ever more important.  Success will come from an ability to target the online shoppers who spend more and return less.”

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Source: BRC

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BRC: UK retail sales in May down by 0.4% on a like-for-like basis from May 2016

London, 2017-Jun-06 — /EPR Retail News/ —

BRC – KPMG RETAIL SALES MONITOR MAY 2017

Covering the four weeks 30 April – 27 May 2017​

  • In May, UK retail sales decreased by 0.4% on a like-for-like basis from May 2016, when they had increased 0.5% from the preceding year.
  • On a total basis, sales rose 0.2% in May, against a growth of 1.4% in May 2016. This is the lowest since January, excluding Easter distortions, and below the 3-month and 12-month averages of 1.9% and 1.2% respectively.
  • Over the three months to May, Food sales increased 3.2% on a like-for-like basis and 4.3% on a total basis. This is the strongest 3-month average since February 2012, excluding Easter distortions. This pulls the 12-month Total average growth to 2.2%, the highest since January 2014.
  • Over the three-months to May, Non-Food retail sales in the UK decreased 0.3% on a like-for-like basis and increased 0.1% on a total basis, below the 12-month Total average growth to 0.5%. May’s Total Non-Food performance was the worst recorded since May 2011.
  • Over the three-months to May, Online sales of Non-Food products grew 7.0% while In-store sales declined 1.8% on a Total basis and 2.3% on a like-for-like basis, below the like-for-like 12-month average decline of 2.0%.

Helen Dickinson OBE, Chief Executive | British Retail Consortium said: “After the pick-up in sales over Easter, consumer spending slowed again in May resulting in almost flat growth on the previous year. Underneath the headlines, there’s continued variation in the performance of food versus non-food products, as sales performance of the two become increasingly polarised. Food sales, albeit positively distorted by inflation, continue to see annual growth, while in non-food categories which are predominantly capturing discretionary spending, retailers find themselves having to compete even harder.

“Overall, May’s sales slowdown is indicative of a longer term trend of a decline in consumer spending power. As household budgets become increasingly squeezed by inflation, predominantly in the non-retail part of the consumer basket, it’s vital that the next Government helps retailers keep prices low for ordinary shoppers. This means, as well as securing a tariff-free trade deal with the EU, negotiating frictionless customs arrangements; providing certainty for EU colleagues working in the UK; and ensuring the continuity of existing EU legislation as it transfers into UK law.”

Paul Martin, UK Head of Retail | KPMG said:

“After the surge in retail sales last month – the by-product of this year’s relatively late Easter – retailers have been brought back down to earth with a thump. Like-for-like retail sales contracted in May, which is likely to represent a more accurate depiction of the state of UK retail currently.

“The impact of inflationary pressures on the nation’s purse continues to play out in this month’s figures, with shoppers evidently spending more on food and drink than on non-food purchases. With inflation continuing to rise and wage growth stagnating, consumers are starting to feel the pinch – although the highly competitive nature of the UK grocery market continues to play out in the consumer’s favour.

“Many retailers, particularly fashion stores, will be poised and ready to make the most of the upcoming summer, so hopefully the weather will play fair. An increased focus on managing costs will dominate the retail agenda. More imminently though, eyes will be firmly placed on the outcome of the General Election, with close attention being paid to the implications it might have on the industry.”

Food & Drink sector performance | Joanne Denney-Finch, Chief Executive | IGD said:

“Food and drink sales were again strong in May, not quite reaching the heights of average growth from the previous two months, but maintaining the trend for year-on-year growth. This was mainly attributable to inflation combined with warm weather in the run-up to the late May bank holiday. The sustained sunshine saw beers, wines and spirits enjoy double-digit growth.

“With no big summer event beyond the regular schedule this year, sales over the next few months will hinge largely on the weather. Hot conditions encourage impulse buying. For instance, over a third (34 per cent) of shoppers say they tend to revert at the last minute to a barbecue when the weather is good.”

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Source: BRC

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BRC: Footfall in April grew 1.6% vs. same month the previous year, the fastest growth in five years

London, 2017-May-15 — /EPR Retail News/ —

BRC- SPRINGBOARD FOOTFALL AND VACANCIES MONITOR – APRIL 2017

Covering the four weeks 02 April – 29 April 2017

  • Footfall in April grew 1.6 per cent on the same month in the previous year, the fastest growth since March 2014.
  • This is well above the three-month average of 0.7 per cent, which is the first positive three-month average since May 2014, and the highest since February 2012.
  • High Street footfall grew 2.3 per cent in April, the fastest growth since March 2014. This was ahead of the three-month average of 1.4 per cent.
  • Footfall to retail park destinations grew by 2.7% in April, the fastest growth since January 2016, and well ahead of the three-month average of 0.9 per cent.
  • Shopping Centre footfall fell by 0.6 per cent in April, a slower decline than the three-month average of -0.9 per cent.
  • The national town centre vacancy rate was 9.3 per cent in April 2017, down from 9.4 per cent in January 2017. This is largely due to sharp declines in Greater London and the East, the high street vacancy rates in all other nations/regions having risen in April.

Helen Dickinson OBE, Chief-Executive | British Retail Consortium

“The Easter holidays boosted family visits to shopping destinations in April, resulting in the fastest annual growth of footfall since March 2014. The inclusion of the holidays in this period will have distorted this figure but even looking beyond this, the picture over the last quarter has been largely positive.

“As has been the trend for some months now, high streets across most of the UK attracted the largest increase in visitors out of all shopping destinations. This translated into good news for stores too, which saw their fastest annual sales growth since January last year.

“At first glance the vacancy rate also looks positive for the month, with a modest decline. However, this average figure belies the increase that occurred in all areas of the UK except London, the East and the North & Yorkshire. We will have to wait for the impact of April’s business rates revaluations to materialise, but the challenges businesses face as the UK negotiates its future relationship with Europe has made reducing the burden and fundamentally reforming the business tax system even more critical.”

Diane Wehrle, Springboard Marketing and Insights Director 

“As Easter fell in April this year, as opposed to March last year, footfall was boosted by +1.6 per cent. This rise comprised a +5 per cent increase in the first half of the month – which culminated in Good Friday and Easter Saturday – and dropped 6.4 per cent in the last two weeks.

“The rise was fuelled further by the weakened Pound, which drove an increase in overseas tourists – demonstrated by the +2.7 per cent uplift in footfall in London’s West End in April – and in Easter staycations amongst domestic visitors. Easter staycations boosted footfall +5.1 per cent in coastal towns and +7.9 per cent in historic towns. The underlying structural shift towards leisure-focussed trips meant that whilst high street footfall rose +1.9 per cent during retail trading hours, trips to high streets after 5pm increased by more than +3 per cent.

“The vacancy rate also improved very slightly in April to 9.3 per cent from 9.4 per cent in January, but this disguises increases in vacancies in all areas apart from in London, the East and the North & Yorkshire. The vacancy rate is perhaps a portent of things to come; inflationary pressures are likely to increase, which could suppress customer behaviour and therefore occupier demand, notwithstanding the emergence of new occupiers who initially tend to focus on London.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC – KPMG: UK retail sales up by 5.6% in April vs April 2016

London, 2017-May-10 — /EPR Retail News/ —

BRC – KPMG RETAIL SALES MONITOR APRIL 2017

Covering the four weeks 2 – 29 April 2017

  • In April, UK retail sales increased by 5.6% on a like-for-like basis from April 2016, when they had decreased 0.9% from the preceding year.
  • On a total basis, sales rose 6.3% in April, against flat growth in April 2016. The performance is positively distorted by the timing of Easter and the highest since April 2011, another Easter distortion. This pulls the 3-month average to 2.0%, above the 12-month average of 1.3%.
  • Over the three-months to April, Food sales increased 2.4% on a like-for-like basis and 3.6% on a total basis. This is much faster than the 12-month Total average growth of 2.0%, the highest since February 2014.
  • Over the three-months to April, Non-Food retail sales in the UK increased 0.3% on a like-for-like basis and 0.7% on a total basis, almost in line with the 12-month Total average growth to 0.8%.
  • Over the three-months to April, Online sales of Non-Food products grew 8.2% while In-store sales declined 1.3% on a Total basis and 1.8% on a like-for-like basis, roughly in line with the 12-month average decline of 1.7%.

Helen Dickinson OBE, Chief Executive, British Retail Consortium

“As expected, the Easter holidays provided the welcome boost to retail sales, which goes some way to making up for the disappointing start to the year. That said, the positive distortion from the timing of Easter was largely responsible for the month’s growth and looking to the longer-term signs of a slowdown, the outlook isn’t as rosy.

“Taking a closer look at the sales figures, consumer spend on food and non-food items is diverging. Food categories continue to contribute the most weight to overall growth, although food inflation has a part to play in this. Meanwhile, consumers are being more cautious in their spending towards non-food products and focussing more on value priced lines.

“Shop prices are still down overall although other items of consumer spending are increasing headline inflation and hence driving a tightening of purse strings. Although today’s figures do indicate that consumers are still willing to spend, with a cocktail of rising costs and slowing wage growth as the backdrop, conditions for consumers will get tougher. The next Government needs to deliver a plan that puts consumers first in its economic policies and the forthcoming Brexit negotiations.”

Paul Martin, UK Head of Retail, KPMG

“April’s sales provided a brief period of respite for retailers following a relentless start to the year. However, much of the rise was driven by the timing of Easter and the growing inflationary pressures the sector is facing, rather than a sudden upswing in consumer confidence.

“Food and drink sales soared significantly in April, suggesting that feasts remain at the heart of festive holidays. That said, in the ultra-competitive grocery sector, these growth figures should be taken with a hefty pinch of salt, with margins under significant pressure and profitability remaining a concern.

“The growth in sales of children’s clothes and toys points to parents making the most of school holidays and keeping the kids entertained. Meanwhile, the rise in furniture sales suggests that springtime home improvements have been kicked into gear.

“Looking ahead, retailers need to ensure that this month’s boost doesn’t lull them into a false sense of security. The retail landscape is changing fast and as such, agility and the ability to manage costs will remain critical.”

Joanne Denney-Finch, Chief Executive, IGD

“April’s food and grocery sales are best viewed in combination with March to iron out the changing date of Easter. Sales across this two-month period were up by around 4 per cent on last year, exceptional growth by all recent standards. Partly, this is due to the return of some food inflation but the underlying demand for groceries was also very robust.

“The public remains in a state of uncertainty though and we cannot be sure how long the good run will last. The number of shoppers expecting to be better off in the year ahead has dipped to 21 per cent from 24 per cent last month.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC Publishes Recommendations For Next Government That Promotes Interests of Retail Industry Consumers

London, 2017-May-08 — /EPR Retail News/ — The British Retail Consortium (BRC) has today (May 04, 2017) published its recommendations for the next Government. ‘Pioneers’ sets out the retail industry’s vision for a plan that promotes the interests of consumers in the Brexit negotiations and supports a pioneering, responsible and vibrant industry for the future.

HELEN DICKINSON OBE, CHIEF EXECUTIVE OF THE BRC SAID:

“The retail industry will want to see plans from the next Government that puts consumers first in the Brexit negotiations, by ensuring that ordinary shoppers are protected from the cost of unwanted new tariffs. Our recent work on UK trade imports, spelled out the cost to consumers’ food bills of leaving without a deal and falling back on WTO rules. Helping retailers to keep prices low for consumers also means negotiating frictionless customs arrangements; providing certainty for EU colleagues working in the UK; and securing the continuity of existing EU legislation as it transfers to the UK.

“The challenges we face as we negotiate our future relationship with Europe makes it essential for policy makers to understand the rapid change and testing conditions that retail must operate in. Policies that support economic growth and a business tax environment fit for purpose in the 21st century, is what’s needed from the next Government to support retail in its mission to drive productivity with better jobs, innovation and investment to improve the communities they serve.”

BRC’S RECOMMENDATIONS FOR THE NEXT GOVERNMENT:

FOR A FAIR BREXIT FOR CONSUMERS:

  • Put consumers first in the Brexit negotiations, ensuring that ordinary shoppers are protected from the cost of unwanted new tariffs.
  • Secure a transitional arrangement that recognises all goods in free circulation, thereby avoiding a cliff edge scenario.
  • Provide assurances to the retail industry’s EU workforce.
  • Transfer existing EU regulation into UK law to help provide certainty and continuity.

FOR A PIONEERING ECONOMY IN A CHANGING WORLD:

  • Build a business tax environment fit for purpose in the 21st century.
  • Accelerate investment in digital infrastructure and enable businesses to build the required skills faster.
  • Empower business responsibility and corporate governance.

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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Change in Sight After Four Years of Falling Shop Prices

London, 2017-May-08 — /EPR Retail News/ —

Period Covered: 03- 07 April 2017

  • Overall shop prices reported deflation of 0.5% in April from the 0.8% fall in March. This is the shallowest deflation rate since November 2013.
  • Non-food deflation decelerated to 1.4% from the 2.0% decline in March. This is the shallowest deflation rate since April 2013.
  • Food inflation decelerated to 0.9% from the 1.0% rise in March.
  • Fresh Food reported inflation of 1.0% in April from the 0.9% rise in the previously month.
  • Ambient Food inflation decelerated to 0.8% in April from the 1.3% rise in March.

HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM:

“This month’s figures mark the four-year anniversary of falling shop prices as competition in the industry continues to keep a lid on prices for consumers. Nevertheless, the rate of deflation has been decelerating month-on month as retailers battle with inflationary pressures resulting from the impact of the weaker pound on input prices.

“Non- food categories were the biggest contributor to the easing of overall deflation this month, recording the shallowest rate since April 2013. Meanwhile, food inflation paused and remains at around one per cent. This is actually relatively low in the in the face of input costs that are rising much faster.

“Prices are undoubtedly on an upward trajectory, which we expect to gradually play out over the course of the year. With the squeeze on household incomes tightening, the retail industry expects plans from the next Government that puts consumers first in the Brexit negotiations, ensuring that ordinary shoppers are protected from the cost of unwanted new tariffs.”

MIKE WATKINS, HEAD OF RETAILER AND BUSINESS INSIGHT, NIELSEN:

“Shoppers are seeing inflation in travel, fuel and when spending away from home, so retailers are cautious about passing on cost price increases. So there continues to be deflation in shop prices albeit we are already seeing inflation in food. In the non-food channel and with a late Easter there was a need to stimulate demand and clear stock in readiness for summer ranges, and seasonal promotions also kept prices low as retailers looked to increase footfall and maintain consumer spend.”

BRC Members and Subscribers an view the full report here

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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Full-time jobs decline as Retailers Assess Working Relationship with Staff

  • The equivalent number of full time jobs fell by 3.9% compared with the same quarter a year ago. Both Food and Non-Food retailers contributed to the decline in FTE employment, although it was Food that saw the deepest falls.
  • In the first quarter of 2017, the number of outlets rose by 0.6% compared with the same quarter a year ago. Food retailers drove the overall increase in the number of stores.
  • All three months of the quarter reported a decline in FTE employment, with January’s decline only marginally shallower than that seen in February and March.

London, 2017-Apr-29 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM, SAID:

“Today’s fall in full-time equivalent employment from our sample of retailers shows a continuation of a year-long downward trend of retailers reducing the number of hours being worked.

“We expect retailers to continue reviewing how they work with their people as they look to address the changing face of retail and keep prices low for consumers. Building inflationary pressures and public policy costs, alongside intense competition, are taking their toll and retail, as a people intensive industry, is being hit hard. That said, many retailers are actively investing in their people to improve the quality and productivity of jobs per employee.

“Looking ahead to the Brexit negotiations for the next government; certainty for the EU colleagues working in the industry and a business tax environment fit for purpose in the 21st century are what’s needed for the retail industry to drive productivity with better jobs, innovation and new skills for the digital age.”

Contact:
BRC Press Office
TELEPHONE+ 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC launches The Tariff Roadmap for the Next Government as part of its A Fair Brexit for Consumers project

LONDON, 2017-Apr-20 — /EPR Retail News/ —As part of our A Fair Brexit For Consumers project, we have launched The Tariff Roadmap For The Next Government.

The report focusses on the tariff aspects of Brexit, illustrating Britain’s current import trade relationships with data and facts to highlight the risks and opportunities presented by the journey ahead.

HELEN DICKINSON OBE, CHIEF EXECUTIVE BRC SAID: 

“Ensuring the journey ahead is positive for both retailers and consumers requires an orderly and sequenced Brexit process. The first step is to mitigate the risks by securing the continuation of tariff-free trade with the EU, to avoid further upward pressure on food prices. Next, is the need to replicate the EU’s existing deals with developing countries. Only then, should the Government look to realise the opportunities presented by new trading relationships with the rest of the world.”

DOWNLOAD

SOURCE: British Retail Consortium

PRESS CONTACT

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BRC-SPRINGBOARD MARCH 2017: Footfall up 1.3% on the previous year, the fastest growth since March 2014

London, 2017-Apr-18 — /EPR Retail News/ —

BRC- SPRINGBOARD FOOTFALL AND VACANCIES MONITOR – MARCH 2017
Covering the five weeks 26 February – 1 April 2017

  • Footfall in March grew 1.3% on the previous year, the fastest growth since March 2014. This is well above the three-month average of -0.2%. Note there is an impact on this number due to a calendar distortion – March 2016 included Easter Sunday, when shops were shut, whereas this year did not, adding one more shopping day, and therefore one more day’s footfall, to the period.
  • There was footfall growth in all three retail destinations in March. High street: 1.7%, Retail Parks: 1.4%, Shopping Centres: 0.2%. This month saw the fastest high street growth since March 2014.
  • 7 out of the 10 nations/regions we report on saw a rise in footfall in March
  • The steepest footfall decline occurred in Northern Ireland, where footfall fell by 3.7%. This was followed by the South West, where footfall fell by 2.3%

HELEN DICKINSON OBE, CHIEF-EXECUTIVE | BRITISH RETAIL CONSORTIUM

“Shopper visits increased to all retail destinations in March, resulting in the fastest annual growth in footfall for three years. This is partly owed to the exclusion of Easter Sunday from the period, which therefore benefits from an additional shopping day. But even looking beyond the distortion, the positive growth across most of the country is a reassuring sign for retailers.

“The high street continues to outperform shopping centres and retail parks, for the second consecutive month. Disappointingly though, this didn’t translate into retail sales, which were down in March on the previous year. Now that the Easter holidays have arrived, the challenge for retailers will be to attract this greater number of high street visitors into their stores.”

DIANE WEHRLE, MARKETING AND INSIGHTS DIRECTOR | SPRINGBOARD

“March definitely provided a break in the clouds, with the +1.3% rise in footfall breaking a six-month consecutive decline and the +0.2% increase in footfall in shopping centres being the first since January 2016. Whilst some of the +1.3% may have been a consequence of the loss of a trading day last year due to an early Easter, the impact of this shift should not be overstated as it will have been mitigated by increased trade on the other days over the Easter trading period.

“Indeed, if anything it is more evidence of the continuing structural shift in the use of retail destinations for leisure and hospitality trips. Virtually all of the increase in footfall in March was derived from the post 5pm period while footfall during the trading hours of 9 am to 5 pm dropped –by just -0.5% in high streets, but much more significantly, by -7.1%, in shopping centres. Indeed, the worsening of consumer confidence and inflation from last year is likely to be constraining shoppers’ willingness to spend on retail goods. This all lends further evidence to the fact that retail is no longer the sole driver of footfall, with a strong leisure/hospitality offer being a critical element to secure retail success.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source:  BRC

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Non-Food products online sales in UK up 6.6% in March 2017 vs 2016’s March, BRC – KPMG

London, 2017-Apr-12 — /EPR Retail News/ —

BRC – KPMG ONLINE RETAIL SALES MONITOR MARCH 2017

Covering the five weeks 26 February – 1 April 2017

  • Online sales of Non-Food products in the UK grew 6.6% in March versus a year earlier, when they had increased by 9.5%. This is the lowest growth since August, below the 3-month and 12-month averages of 7.4% and 9.0% respectively but is negatively distorted by the timing of Easter.
  • Over the 3 months to March, Online sales of Non-Food products in the UK grew 7.4% year-on-year, the lowest since May 2013. Over the same period, Total Non-Food sales in the UK fell by 0.8%, the second consecutive month of 3-month average decline
  • In March 2017, Online sales represented 22.0% of total Non-Food sales in the UK, against 20.9% in March 2016. On a 3-month basis, penetration rate was 22.3%.
  • Over the 3 months to March, Online sales contributed 1.7 percentage points to the year-on-year growth of Total Non-Food sales. In contrast, In-Store sales made a negative 3-month contribution of 2.5 percentage points. In March, Online sales contributed 1.2 percentage points to Non-Food growth
  • Over the 3 months to March, In-Store sales fell, posting declines of 3.0% on a total basis and 3.4% on a like-for-like basis. For the month of March, In-Store sales showed a decline, exaggerated by the timing of Easter.

HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM

“Online non-food sales growth in March was dampened by the later timing of Easter this year. Those products historically popular with shoppers over the long weekend, notably larger homeware items, took a hit but will feel the benefit during April instead. Health and beauty products on the other hand, achieved the strongest sales growth of all categories thanks to gift purchases for Mother’s Day, while gaming and electricals continue to be online bestsellers as customers are enticed with new product launches.

“Retailers continue to innovate and invest in their digital offers to attract customers amidst the intense competition. Mobile optimisation has been the focus for many and some are already reaping the benefits of higher conversion rates as customers enjoy speedier browsing activity. Meanwhile, for fashion retailers, new free delivery initiatives have successfully driven increased loyalty from those customers who sign up.”

PAUL MARTIN, UK HEAD OF RETAIL, KPMG

“Online retail sales in March fared better than the high street, with non-food sales up 6.6 per cent in the month. That said, we haven’t seen growth this low since August last year and the timing of Easter is likely to have had an impact. Demand in UK retail is also showing signs of slowing down more broadly.

“Most categories did note growth in the month however, with health and beauty performing particularly well. It is likely Mother’s Day provided a helping hand, and with temperatures being milder than usual for the month, shoppers were also shrugging off the shackles of winter. Fashion sales also proved especially popular, with spring collections seemingly striking the right chord with shoppers.

“The later timing of Easter is likely to have contributed to the sluggish furniture and homeware sales in the month.  Interest in these categories will probably pick-up in the coming month, with the holiday providing an opportunity for home improvements.

“It remains to be seen if the slowdown in online sales is just a temporary blip or a more significant occurrence.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

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BRC – KPMG: UK retail sales decreased by 1.0% in March 2017 vs March 2016

London, 2017-Apr-12 — /EPR Retail News/ —

BRC – KPMG RETAIL SALES MONITOR MARCH 2017

Covering the five weeks 26 February – 1 April 2017

  • In March, UK retail sales decreased by 1.0% on a like-for-like basis from March 2016, when they had decreased 0.7% from the preceding year.
  • On a total basis, sales fell 0.2% in March, against flat growth in March 2016. This remains below the 3-month average of 0.1% and the 12-month average of 0.8%, but is negatively distorted by the timing of Easter.
  • Over the three-months to March, Food sales decreased 0.2% on a like-for-like basis and increased 1.2% on a total basis. This is the first time in four months that the 3-month average Total growth has been below 2.0%. The 12-month Total average growth rose to 1.5%, the highest since April.
  • Over the three-months to March, Non-Food retail sales in the UK declined 1.1% on a like-for-like basis and 0.8% on a total basis. This is the slowest 3-month Total average growth since May 2011, and drags the 12-month Total average growth to 0.3%, the lowest since April 2012.
  • Over the three-months to March, Online sales of Non-Food products grew 7.4% while In-store sales declined 3.0% on a Total basis and 3.4% on a like-for-like basis.

HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM

“First impressions of March’s sales figures are underwhelming, with the first decline since August last year. That said, the distortion which results from the timing of Easter always makes Spring a tricky period to assess and the later timing of the holiday this year certainly detracted from last month’s performance.

“Mother’s Day gift purchases provided some compensation, boosting sales of beauty and stationary items in particular. Looking at the bigger picture though, the slowdown in non-food growth persists and it now stands at its lowest three-month average for nearly six years.

“Meanwhile, food sales continue to outperform non-food sales as shoppers focus their spending on essential items. This marginal growth in food was bolstered by slightly higher shop prices following increases in global food commodity costs and a weaker pound. The pressure on prices continues to build, albeit slowly, and will inevitably put a tighter squeeze on disposable income and so to ensure consumers continue to enjoy great quality, choice and value on goods, securing tariff free-trade must be the priority as the Brexit negotiations begin in earnest.”

PAUL MARTIN, UK HEAD OF RETAIL, KPMG

“March proved a disappointing end to the first quarter for retailers, with like-for-like sales in the month down 1 per cent on last year. Easter being later in the year is likely to have contributed to the bleaker picture, alongside the other obstacles facing the sector – especially increased input costs.

“Food sales remained in the black for a full quarter, although this is largely being driven by rising inflation, so no reason for too much celebration. Women’s footwear certainly stepped up, encouraged by the arrival of spring collections. Meanwhile, the rise in jewellery and beauty products is likely to have been helped by Mother’s Day.

“Retailers will be hoping Easter boosts retail sales in April, whether it’s shoppers making the most of the holiday or those choosing to spruce up their homes. The new tax year marks further pressure on margins in the form of the apprenticeship levy and business rate changes, therefore tighter cost management and a focus on efficiency is more important than ever.”

JOANNE DENNEY-FINCH, CHIEF EXECUTIVE, IGD

“It’s always difficult to interpret the food retail figures for March because of the shifting Easter week. Although sales dipped versus last year, there is every opportunity for retailers to recoup the lost ground in April.

“Easter is the second-biggest peak in the year for food shopping and just as at Christmas, online is playing a growing part. 43% of shoppers say they have bought some of their groceries online in the last month, while 60% intend to shop online for groceries over the next three years.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

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BRC/KPMG: Online sales of Non-Food products in the UK grew 8.0% in February YoY

  • Online sales of Non-Food products in the UK grew 8.0% in February versus a year earlier, when they had increased by 10.7%. This is above the 3-month average of 7.7% and the 12-month average of 9.3%. This is the second month in a row the 12-month average has sat below double-digit figures.
  • Over the 3 months to February, Online sales of Non-Food products in the UK grew 7.7% year-on-year, the lowest 3-month average since our monitor began. Over the same period, Total Non-Food sales in the UK fell by 0.2%, the first decline since November 2011.
  • In February 2017, Online sales represented 22.2% of total Non-Food sales in the UK, against 21.0% in February 2016. On a 3-month basis, penetration rate was 23.2%.
  • Over the 3 months to February, Online sales contributed 2.3 percentage points to the year-on-year growth of Total Non-Food sales. In contrast, In-Store sales made a negative 3-month contribution of 2.5 percentage points. In February, Online sales contributed 1.8 percentage points to Non-Food growth.
  • Over the 3 months to February, In-Store sales fell, posting declines of 2.4% on a total basis and 2.6% on a like-for-like basis. For the month of February, In-Store sales showed a decline.

London, 2017-Mar-08 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM

“A fairly stable rate of online growth has again helped compensate for declines in stores. The online market has now grown to over 20 per cent of total non-food sales, and as a result growth of 8.0 per cent is understandable if not as impressive in previous years and helps explain the lowest 3-month average rate of year-on-year growth since May 2013.“Digital platforms remain the preference for a savvy shopper to search for the items they want at the best price, and helps explain why clothing and electronics have driven online growth when sales in stores have flagged. A later Mother’s Day this year has distorted the figures for February, since purchases which were made in the final week of February last year will now fall in March’s figures this year. We expect March’s growth to be stronger due to the impact of this distortion and of new video game releases.”

PAUL MARTIN, UK HEAD OF RETAIL, KPMG

“Online retail sales in February provide further contrast to the poor performance noted on the high street. Non-food online sales are up 8% on last year and penetration rates remain stable at 22.2%.

“Interestingly, many of the categories that failed to capture the attention of shoppers in store, did so online – including clothing and footwear. Carefully placed promotions and the shorter wait until pay day in February are likely to have nudged online shoppers to e-checkouts.

“School half-term will also have contributed to online retailer’s stronger performance and notably children’s toys performed particularly well during the month.

“In the run up to the Budget, online retailers will be eager to learn if the Chancellor looks to support the retail sector. The business rate rise has been hotly contested, given the varying impact the proposed changes will have on retailers utilising physical or online retail channels.”

Contact:

BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

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BRC/KPMG: February was yet another challenging month for the majority of retailers in UK

  • In February, UK retail sales decreased by 0.4% on a like-for-like basis from February 2016, when they had increased 0.1% from the preceding year.
  • On a total basis, sales rose 0.4% in February, against a 1.1% increase in February 2016. This remains below the 3-month average of 0.8% and the 12-month average of 0.9%.
  • Over the three-months to February, Food sales increased 0.6% on a like-for-like basis and 2.0% on a total basis. This is the third consecutive 3-month average Total growth of 2.0% or above, taking the 12-month Total average growth to 1.2%, the highest since May 2014.
  • Over the three-months to February, Non-Food retail sales in the UK declined 0.4% on a like-for-like basis and 0.2% on a total basis. This is the first 3-month decline since November 2011, dragging the 12-month Total average growth to 0.6%, the lowest since May 2012.
  • Over the three-months to February, Online sales of Non-Food products grew 7.7% while In-store sales declined 2.4% on a Total basis and 2.6% on a like-for-like basis.

London, 2017-Mar-08 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM

“Overall growth was subdued in February driven by a continuation of the slowdown in non-food sales. This was marginally offset by slightly stronger growth in food sales.

“There was some negative distortion created by the later timing of Mother’s Day this year, which meant that some categories, notably women’s accessories and health and beauty, didn’t benefit from the build-up of gift purchases as they did last year. But looking beyond this distortion, the persistent weak sales performance of several non-food categories points to an undeniable trend of cautious spending on non- essential items.

“Tougher times are expected ahead. The impact of inflation on consumer spending will add further intensity to an already fiercely competitive environment in which the ability to adapt and innovate will be key to survival. Looking to the Budget this week, we hope to see a commitment from Government to lay a path to a truly sustainable business rates system that will give retailers the flexibility needed to invest and support their local communities.”

PAUL MARTIN, UK HEAD OF RETAIL, KPMG

“Evidently February was yet another challenging month for the majority of retailers, with like-for-like sales down 0.4 per cent on last year. Food sales however, continued to buck the general trend by remaining in the black. That said, with inflation starting to have an impact on retail performance, it is clear that consumer confidence is showing signs of deteriorating.

“School half-term holidays are likely to have contributed to the stronger performance in children’s toy sales during the month. Likewise, furniture and home textile sales will have benefited from parents using the holiday as an opportunity to spruce up the home.

“Retailers will be paying close attention to the upcoming Spring Budget in the hope of seeing some measures to ease the pressure being placed on margins. For some bricks and mortar retailers, a hike in business rates may well be the straw that breaks the camel’s back.”

JOANNE DENNEY-FINCH, CHIEF EXECUTIVE, IGD

“Food and grocery turned in a solid sales performance throughout February, with a particularly strong Valentine’s Day this year.

“The return of a little inflation to the aisles is also playing its part and shoppers are bracing themselves for more to come: 81 per cent believe food prices will rise in the coming year, the highest level of anticipation since September 2016. This puts the emphasis back on hunting for value, with 63 per cent of shoppers favouring everyday low prices over more special offers.”

Contact:

BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

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BRITISH RETAIL CONSORTIUM: Overall shop prices reported deflation of 1.0% in February

  • Overall shop prices reported deflation of 1.0% in February, a sharp deceleration from the 1.7% fall in January.
  • Non-food deflation decelerated to 1.8% in February, an easing from the 2.3% decline in the previous month.
  • Food reported inflation of 0.4% in February, a sharp acceleration from the 0.8% fall in January. This is the first inflationary rise since April 2016.
  • Fresh Food reported a marginal inflation rate in February, up 0.1% from the 1.2% fall in each of the previous three months.
  • Ambient Food reported annual inflation for the second time in three months, rising 0.8% in February from the 0.2% decline in January.

London, 2017-Mar-06 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM:

“Shop prices in February were 1 per cent lower than the same month last year, continuing a trend of year-on-year price falls that has lasted nearly four years.

“However, it is clear that the significant underlying cost pressures, which have been building over the last year are beginning to filter through into shop prices. Global food prices were on average 16 per cent higher at the beginning of this year compared to last, whilst over the same period the value of the pound fell around 15 per cent. Despite this, February saw an increase of just 0.4 per cent in the prices of food sold in shops; proving retailers’ resilience in managing to largely shield consumers from cost increases.“For the time being, consumers continue to benefit from an annual fall in non-food prices, which were down 1.8 per cent on the previous year. However, the rate of deflation has eased considerably from a monthly perspective, which can be explained in part by an end to the promotional activity in January, after a weak festive sales performance in some non- food categories.

“Looking further ahead, retailers, who operate in a highly competitive market with narrow margins, will be increasingly hard pushed to protect their customers from the inevitable impact of these rising cost pressures. We can therefore expect this impact to start manifesting in shop prices over the course of the year.”

MIKE WATKINS, HEAD OF RETAILER AND BUSINESS INSIGHT, NIELSEN:

“Whilst food inflation has returned, the competition between retailers means that price increases passed onto consumers in February were relatively small, and there were also some seasonal and weather related increases. Non-food prices remain deflationary and in part this reflects the structural change underway in non-food retailing. At the moment consumer sentiment around spending intentions is strong so we don’t anticipate any significant change on retail spend over the next few months even if shop price inflation gains more momentum.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

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Retail 2020 Dashboard: BRC provides baseline measurement of progress to more productive, more rewarding and better paid jobs

Retail 2020 Dashboard: BRC provides baseline measurement of progress to more productive, more rewarding and better paid jobs

 

London, 2017-Feb-14 — /EPR Retail News/ — The BRC and our members are committed to understanding how developments in retail business can achieve positive change; we anticipate playing a strong partnership role with Government in the development of an Industrial Strategy to make this change happen.

Our work has shown that it is imperative to improve industry productivity, to harness and develop new and different skills for the digital age as well as a clear need to deliver better on the things that people who work in the industry say are most important to them. Working with members, we have defined a shared industry vision of what better jobs look like in the future. (Retail 2020- The Journey to Better Jobs.)

The Retail 2020 Dashboard, launched on 13 February 2017, takes this project further by providing a baseline measurement of progress towards this trajectory of more productive, more rewarding and better paid jobs. The Dashboard will monitor how the retail workplace landscape is responding to these structural changes by tracking progress on four key industry metrics: productivity, pay, engagement and employment.

HELEN DICKINSON OBE, CHIEF EXECUTIVE OF THE BRITISH RETAIL CONSORTIUM SAID:

“Structural change in the industry has significant implications for its workforce. The technological revolution is fundamentally altering the way retail businesses operate and the skills needed for future success. We have a choice between improved productivity driven by better jobs, innovation and new skills for the digital age and improved productivity driven primarily by a shrinking UK retail workforce.

“The Retail 2020 Dashboard will shine a light on the retail industry’s progress in becoming more productive and developing more engaged employees. As our industry co-operates to share data and developments, we will be able to provide Government with valuable information about what transforms productivity.

“At a time when UK retail is having to find 20 per cent of its current profitability to mitigate the impact of uncontrollable increases in its cost base and against a backdrop of inflation and slow growth, the industry’s commitment to improving productivity will require the support of Government policies that allow room to invest in skills and technology for the digital age. This is where we see a retail opportunity in the Government’s recently published Industrial Strategy”

Contact:

TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

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BRC’s Retail Crime Survey reports 40% increase in violence against retail workers

London, 2017-Feb-06 — /EPR Retail News/ — The BRC’s annual Retail Crime Survey reveals that 53 per cent of retail fraud is now cyber-enabled, and violence and abuse against staff has risen by 40 per cent in the past year.

The BRC’s Retail Crime Survey has today (February 02, 2017) laid bare a growing new frontier of retail crime, driven by rising cyber-enabled incidents. It also reports a 40 per cent increase in violence and other forms of abuse against retail workers in the past year.

The findings reveal that ever more sophisticated forms of crime are being perpetrated against retailers and their customers. Examples of cyber-enabled crimes being committed include phishing, theft of consumer data, doxing and social engineering, as well as a host of other increasingly elaborate scams.

The BRC’s report highlights concerns among retailers that existing deterrence is not effective enough, and a growing sense among those working in the retail industry that offenders are able to act with impunity.

The overall number of retail crimes committed has risen to 3.6 million, with the direct financial cost of crime to the retail industry reaching £660m in 2015-16.

HELEN DICKINSON OBE, CHIEF EXECUTIVE OF THE BRC, SAID:

“These figures reflect a deeply concerning trend. Attacks on retail workers are intolerable, as are attempts to defraud customers. A significant aspect of the cyber security challenge for retailers is the attractiveness of customer data from the point of view of criminals, many of whom operate outside UK borders but can nevertheless gain relatively easy access to UK digital networks.

“Retailers are doing everything possible to ensure that staff members and customers are safe and protected. But this rising tide should be stemmed through even stronger cooperation between industry, the government, law enforcement and the private security industry. There is work to do to further improve collaboration between the UK retail industry and its partners, and raise standards of security and policing of these threats across the country.”

(The BRC Retail Crime Survey sample covered 37% per cent of the retail industry by turnover and 35% by staff, accounting for 1.1 million employees.)

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

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Consumers benefitted from falling shop prices in January

  • Overall shop prices reported deflation of 1.7% in January, an acceleration from the 1.4% fall in December.
  • Non-food deflation accelerated to 2.3% in January, deeper than the 1.9% decline in the previous month.
  • Food deflation accelerated to 0.8% in January from the 0.7% decline in December. This compares with a 0.7% fall on a 3-month basis.
  • Fresh Food deflation remained at 1.2% for the third consecutive month.
  • Ambient Food moved back into deflationary territory after a marginal rise in December, falling 0.2% in January.

London, 2017-Feb-03 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM:

“January bucked the monthly trend of an easing in shop price deflation, with prices down 1.7 per cent compared to January 2016; a larger year on year fall in shop prices than the 1.4 per cent fall in December. For now, consumers continue to benefit from falling shop prices year on year. However, fluctuations in the monthly figures belie an underlying trend of building cost pressures that are gradually feeding through from the fall in sterling combined with higher commodity prices. This will inevitably mean that we start to see a general upward trend in inflation over 2017.

“In fact month-on-month food prices were up, although the impact of this on inflationary pressure was offset by the discounting of excess stock by a number of non-food retailers after a tepid sales performance over the festive period.

“Retailers’ focus will be on protecting their customers from the effects of increasing input costs, but with the cost of doing business rising and margins and profits being squeezed, their efforts will require the support of public policies that help them keep prices low for shoppers. This means capping the annual uplifts in business rates and ensuring no new tariffs remains a core objective of the negotiations on exiting the EU.”

MIKE WATKINS, HEAD OF RETAILER AND BUSINESS INSIGHT, NIELSEN:

“Consumer demand was perhaps better than expected at the end of last year and retailers are still managing to limit currency related cost increases being passed onto shoppers. This is helping to give some stability to the industry at the start of 2017. However, there is already inflationary pressure elsewhere in the economy and this will start to have an impact on the disposable income of households later in the year.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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‘The Changing Face of Retail’ — a new film project of BRC and ITN Productions on the future of British shopping

London, 2017-Jan-26 — /EPR Retail News/ — The programme will build on the BRC’s recent industry report, ‘Retail 2020’, which predicts fewer but better jobs in the retail industry over the next decade. It will explore what changes in the way people shop will mean for businesses, staff and consumers, and analyse the impact of Brexit on the retail industry in the coming years.

Launching at the BRC’s ‘Retail 2020’ event on the 16th May 2017, the film will be fronted by national newsreader Natasha Kaplinsky and will be a long-form current affairs-style programme, drawing upon ITN’s 60-year heritage.Currently in pre-production, ITN Productions are inviting those working in the retail industry to share their story and be part of the film by contacting David Ives, Programme Director at ITN Productions on 020 7430 4266 or david.ives@itn.co.uk. The news-style format will include interviews, news items and sponsored editorial profiles.

Commenting on the film, Helen Dickinson OBE, the Chief Executive of the BRC said:

“Retail is woven into the fabric of our everyday lives. But the rate of change within the retail industry is set to quicken as the digital revolution advances, more property leases come up for renewal, labour costs go up and technology costs go down. As the voice of the British retail industry, we’re pleased to be partnering with ITN Productions to detail what the future of retail will look like.”

Simon Shelley, Head of Industry News at ITN Productions said:

“ITN Productions is delighted to be partnering with the British Retail Consortium to chart the transformational change that the retail industry is undergoing, exploring the shift in the way people shop, examining the effect this has on the vast number of people who work in the sector, and understanding the support UK retailers require to flourish. We’re excited to embark on this project and engage with key organisations and people dedicated to shaping the future of retail.”

Stay tuned for further details!

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC chief executive Helen Dickinson OBE responds to Theresa May’s speech on Brexit

London, 2017-Jan-19 — /EPR Retail News/ — RESPONDING TO THERESA MAY’S SPEECH TODAY (January 17, 2017)  ON BREXIT, HELEN DICKINSON OBE, CHIEF EXECUTIVE OF THE BRC SAID:

“The Prime Minister has an ambitious plan with the right priorities. It is crucial that Britain gets a new deal that works for ordinary British consumers, which doesn’t hit them with the costs of new import tariffs at a time when the pound is already weakened. The Government has an opportunity to secure a win-win deal that works for the UK economy, by keeping prices down for consumers, while allowing the EU to continue benefiting from its open-trade relationship with the UK.

“This deal will take time to agree. The proposed ‘phased introduction’ must at all costs avoid the cliff-edge scenario – a sudden and overnight change in trading conditions that won’t benefit anyone. The number one priority for an orderly exit should be to allow all goods traded between the EU and the UK to be in free circulation.”

On the transfer of EU regulation:

“We welcome the clarity provided by the Government’s intention to transfer existing EU-based regulation into UK-based regulation.  Transferring responsibility for regulation from the EU to the UK will be a complicated task, taking up enormous resource. The focus should be ensuring the smooth transition from EU to UK law. Substantive reform will have to wait until we have left the EU.”

On the status of EU colleagues:

“Workers from the European Union are part of the reason that British retailers are often able to deliver affordable and high-quality goods. The Government is right to signal reassurance to EU workers throughout our UK supply chains about their right to remain here.”

Notes to Editors:

Retailers have come together to evaluate the impact of different potential trading arrangements, the analysis of which will be published by the British Retail Consortium soon.

Contact:

02078548900
info@brc.org.uk

Source: BRC

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BRC Chief Executive: Both footfall and shop prices have fallen year-on-year, retail spending grew in September by 1.3%

London, 2016-Oct-17 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM, SAID: “Total footfall was fractionally down this month with almost one per cent fewer people heading out to shopping locations across the UK. While in itself this isn’t the news retailers would hope for, taken with other retail industry data published this month it tells a fascinating story. At the same time as both footfall and shop prices have fallen year-on-year, retail spending grew in September by 1.3 per cent. This is a function of the changing face of retail and the hard work and innovation of British retail businesses who are responding brilliantly to technological advances and changing consumer habits.”

DIANE WEHRLE, MARKETING AND INSIGHTS DIRECTOR, SPRINGBOARD, SAID: “The headline result for the UK shows a slight worsening of footfall in September from August, but does not reveal the underlying trend that shopping centres are losing shopper numbers at a faster rate than high streets. Whilst the very warm and sunny weather will have drawn consumers to high streets in September, resulting in a greater drop in shopping centre footfall of 2.5 per cent, this is not just a one off result as shopping centre footfall has dropped by 1.8 per cent for the year to date compared with -1.4 per cent in high streets and a rise of 1.2 per cent in retail parks. The issue for shopping centres could be that many have lacked the investment required to maintain their appeal for shoppers whose standards and expectations have risen.

“The other trend is the rate of increase in footfall in retail parks is diminishing, with a decline in three months of this year and a lower average increase for the year to date of 1.2 per cent compared with 2.2 per cent last year. Changes in their offer including family friendly restaurants, coffee shops, libraries, and cinemas heightened the attractiveness of these locations to shoppers and led to an uplift in footfall. Inevitably this rate of increase slows.

“Moving forward into what should be the most lucrative trading period of the year, despite the challenges of a weaker pound and living wage costs, it is critical that staffing remains strong to deliver the level of customer service required to ensure retail destinations offer a quality customer experience.”

Media Contact:

BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC: Toy category boosted online sales in September

London, 2016-Oct-11 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM: “As with total sales, online saw an improvement on last month’s performance and fell back in line with the twelve-month average of above 10 per cent. Interestingly, for the first time online was a popular shopping destination for back- to school purchases, testament to retailers successfully ramping up their digital services and making it an integral part of the customer offer. Promotional activity in the toy category, which was September’s top performing category, also boosted online sales as the early birds were enticed to start their Christmas shopping.

“Online shopping is still the main source of sales growth for UK retailers, but popular services like click & collect and show rooming are significant drivers of online sales meaning physical stores still have a crucial role to play. Shoppers are more and more using a combination of the internet and high-street stores for the whole shopping journey; from browsing to the purchase itself. The result is that shops are increasingly becoming a destination to experience products rather than just to buy them.”

PAUL MARTIN, NEWLY APPOINTED HEAD OF RETAIL, KPMG: “With summer coming to an end and “back to school” the main event in September, online shopping growth accelerated in the month with non-food sales up 10.2 per cent compared to last year and penetration rates rising to 21.1 per cent.

“Children’s toys performed strongest in terms of growth, no doubt spurred on by notable promotions from some of the major retailers in this sector. Likewise, health and beauty, furniture and home accessories all experienced a ringing at e-checkouts, as consumers looked to bag a bargain in the end of season sales.

“Compared to a dreary performance on the high-street, women’s fashion performed well online. However, footwear didn’t stand up to the success observed in-store, notably the only category which saw a decline online this month. Nevertheless, all eyes will be fixed on maintaining online sales momentum between now and Black Friday – the next major e-tail moment in the 2016 calendar.”

Media Contact:

BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC: total Food sales increased 1.6% on three-month basis, its best level since November 2013 excluding Easter distortions

LONDON, 2016-Oct-11 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM: “Today’s figures show a return to sales growth, primarily driven by stronger food sales which saw their highest increase since November 2013. On the flipside, sales growth of non-food items remained sluggish. Despite a flurry of back- to- school purchases, clothing sales in particular had a more challenging month.

“September saw the consumer confidence index restored to levels seen before the EU referendum in June which did translate into a willingness to spend on bigger ticket items. However, the monthly out turn continues to highlight ongoing volatility in retail spending and to reflect longer- term economic headwinds as retailers begin to seek to mitigate the impact of higher import costs due to the fall in the value of the pound.

“Against the current backdrop of intense competition and transformational change in the industry, it’s crucial that retailers are able to continue their excellent track record of keeping prices low for their customers and offering great choice and value. With that in mind the BRC will be ensuring that in the forthcoming Brexit talks, Government negotiators have their sights set firmly lowering import costs as well as avoiding any increase in tariff costs as the UK leaves the EU.”

PAUL MARTIN, NEWLY APPOINTED HEAD OF RETAIL, KPMG: “After a fairly disappointing August, the ‘back to school’ rush resulted in a much needed uplift for retailers in September with total sales up 1.3 per cent in the month.

“The shoe was truly on the right foot for children’s footwear, with the category leading the way in the month. No doubt timely in-store promotions helped to capture the attention of shoppers, whilst the August bank holiday that fell into this month’s figures also helped to boost sales. Sadly this success wasn’t mirrored for women’s clothes and footwear, with consumers seemingly uninspired by autumn collections due to warmer weather in September.

“Elsewhere, it was yet another month of positive growth for the grocers. Late summer temperatures combined with shoppers continuing to benefit from the ongoing price war has meant food and drink sales have been in the black for a full quarter – undoubtedly welcome news for the sector.
“As we move into the all-important golden quarter at the end of the year, retailers will be looking to make the run up to Christmas, including Black Friday, a success.”

FOOD & DRINK SECTOR PERFORMANCE, JOANNE DENNEY-FINCH, CHIEF EXECUTIVE, IGD: “In encouraging news for food and grocery companies, the growth seen through the summer months continued into September. Shoppers are feeling generally upbeat, with three-quarters (76 per cent) expecting their personal financial situation either to improve or stay the same in the coming year, up from 69 per cent in August”

“Although the sales growth remains modest, grocery retailers and manufacturers have reason to feel optimistic as Halloween, Bonfire Night and Christmas come on to the horizon.”

Media Contact:

BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

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BRC – KPMG: sales in August 2016 declined 0.3% against a 0.1% increase in August 2015

London, 2016-Sep-06 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium. “A month of extraordinary achievement for Team GB certainly produced a feel-good effect and consumer confidence was up on July, but that generally didn’t translate into extra sales. Consumers were enticed towards leisure and outdoor activities rather than shopping, although Food did post its strongest performance in more than two years; fuelled by demand for picnic, barbeque supplies and celebratory drinks.

“Care should be taken in reading too much into August’s lacklustre performance. As we’ve seen in the last couple of months, data portending the health of the economy paint a volatile picture. The fact is that so far little has directly changed for the UK’s consumers as a result of the referendum, so it’s the pre-existing market dynamics that are still driving sales. The slowdown in real wage growth in the first half of 2016 and strong competition will continue to weigh on trend growth in total sales; whilst holiday timings, promotional and seasonal activity will contribute to fluctuations month on month.”

David McCorquodale, Head of Retail, KPMG
“In contrast to July, August’s retail figures illustrate somewhat of a U-turn of retail fortunes. Like-for-like sales were down 0.9 per cent on this time last year – painting a disappointing picture given previous signs of encouragement.

“Sales of women’s fashions performed particularly poorly, despite widespread promotions. The warmer weather made it almost too hot to shop and dissuaded shoppers from looking at the newly arrived autumn products. Despite this, jewellery sales continued to benefit from international shoppers taking advantage of the weaker pound. Whilst for those at home, some of whom may have opted for a staycation given the exchange rate, the warmer weather put wine and barbeques firmly on the menu – much to the delight of food and drinks sellers.

“With the Bank holiday weekend and ‘back to school’ sales largely falling in next month’s figures, it’s unsurprising that children’s fashion and footwear haven’t yet experienced an uplift. Given the volatility of retail sales in the past few months, no doubt retailers will be hoping for a smoother ride in the lead up to Christmas.”

Food & Drink sector performance, Joanne Denney-Finch, Chief Executive, IGD. “A strong August for sales under mainly blue skies completed a good summer for grocery retailers, with the best underlying three-month growth for more than two years. “Although 51 per cent of shoppers feel that the next 12 months is a time for them to play it safe in financial terms, this does not seem to be curtailing overall spending on everyday items like food and groceries.”

For Media Enquiries:
Zoe Maddison
British Retail Consortium
Tel:  0207 854 8924
Email:  Zoe.Maddison@brc.org.uk

Source: British Retail Consortium