Tag Archives: Helen Dickinson

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British retail industry employs 100,000 people in roles that didn’t even exist five years ago – BRC

LONDON, 2016-Sep-22 — /EPR Retail News/ — British retail today employs 100,000 people in roles that didn’t even exist five years ago, figures compiled by the British Retail Consortium (BRC) reveal today (September 21, 2016). While overall numbers of employees in retail are expected to fall over the coming few years, innovative ways of working will also create tens of thousands of new types of job including digital artworkers, online merchandisers and even personal stylists.

As 42 retail businesses employing 1,200,000 people lent their support to a shared vision of The Journey to Better Jobs in the industry, BRC Chief Executive Helen Dickinson said the data proved just how creative and dynamic retailers are becoming as structural changes in the market, competitive pressures and higher costs drive the unprecedented pace of transformation:

“Retailers have always been quick to adapt to the changing competitive environment, but the fact that over the coming five years they will create more jobs in new roles than Google employs worldwide[1] shows just what fantastic opportunities retail offers in all kinds of roles,” Dickinson said.
“Where once retail jobs were stigmatised as just ‘shelf-stacking,’ the industry is now a leader in offering opportunities in app development, microbiology or events planning.”

Data from BRC members showed that over three per cent of retail employees are occupied in roles that didn’t exist five years ago. With the majority of these jobs in occupations requiring high levels of technical, scientific or creative skill, this means that there are more people working in new roles in retail than are employed by the entire UK aerospace industry[2].

The Journey to Better Jobs is the third report in its ‘Retail 2020′ series, which examines the way retail jobs are changing and how we can ensure more rewarding and better-paid jobs in the industry in years to come.

The report provides a roadmap for improvement in a broad range of areas that are vitally important to retail employees. These include the way in which training supports progression, customising jobs to cater for differing life needs, making routes to progression more accessible and means of engaging people in improving productivity.

Chairman of John Lewis Partnership Sir Charlie Mayfield said: “The UK retail market is the most competitive in the world and it is undergoing a level of structural change not seen before, driven by the phenomenal speed of new technology. We all need to rethink how our businesses operate, what our customers need in the future and what this means for the skills of the people we employ. We don’t believe the transition will be easy but we are committed to ensuring that in the future there will be better jobs in retail.”

Conor D’Arcy at the independent think tank the Resolution Foundation said: “The fast-changing nature of retail presents huge challenges for employers and their staff. But the vast creation of new kinds of jobs also creates opportunities to boost the skills of retail staff and support progression up the career ladder and onto higher pay. It’s vital that retailers get on board with this task of making retail an attractive industry to work and grow in.”

Case Study
Luke Simmons – Product Owner in Sainsbury’s Digital and Technology Division
In 2004, while looking for a secure job that could offer him good prospects, Luke started to work as a temporary checkout operator at his local Sainsbury’s store in Harlow, during the busy Christmas period. In the New Year, Luke was offered a permanent role as a checkout operator and later promoted to the position of Team Leader.

Luke then asked to join Sainsbury’s management scheme and became a manager at a new flagship store in Hertfordshire. During his time there, he managed the introduction of new Scan and Go technology designed to help customers shop more quickly. After developing his interest in technology, Luke joined Sainsbury’s IT Department in London helping other stores introduce Scan and Go.

In 2014, Sainsbury’s created a new Digital and Technology Division. The new, 1000 strong team creates and manages its websites and Apps, and supports its online businesses, as well as providing more traditional IT support. Luke applied to become a Product Owner – one of the hundreds of new jobs created by the new Division. Today, he is a qualified Product Owner and leads a team of 12 developers, designers and testers who together created, and now manage, the Sainsbury’s Groceries App.

Notes to editors:
– Interviews available on request. The BRC can facilitate interviews with retail employees in new roles.

for media enquiries:
zoe maddison
communications assistant, BRC
tel: +44 (0)20 7854 8924

Source: BRC

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BRC Helen Dickinson: EU is an increasingly important market for UK retailers

  • Total retail search volumes grew 52% in the first quarter of 2016 compared with the same quarter a year ago.
  • Search volumes on mobile devices increased 50% in the first quarter of 2016 compared with the same quarter a year ago.
  • Beauty was the most searched sector by EU consumers on mobile devices, reporting growth of 91% in Q1 2016.
  • Department Stores was also a popular sector for EU consumers on mobile devices, increasing 75% in Q1 2016.
  • The Czech Republic demonstrated the strongest appetite for UK retailers, reporting a 256% increase on mobile devices in the first quarter of 2016.

London, 2016-Apr-27 — /EPR Retail News/ — Helen Dickinson OBE, BRC Chief Executive, said: “Today’s figures provide further evidence that the EU is an increasingly important market for UK retailers. With 14 EU countries reporting over 100% growth in searches on mobile devices, not only is interest in UK retail growing steadily on the continent, EU consumers are also far more likely to be experiencing the British retail offer through their smartphones.This impressive mobile interest sits alongside a healthy double-digit increase in total searches across all devices in all but one EU Member State (Estonia). The desire for UK retail products is especially strong in the beauty sector and searches for British department stores are also very high – likely due to the UK being the home to some of the most recognisable department store brands in the world. In all, the strength and popularity of UK retail beyond our own borders shows little sign of diminishing.”

Martijn Bertisen, Retail Director, Google, said: “UK brands continue to drive interest from the rest of Europe: particularly our department stores and our beauty retailers. Some of the largest major European markets like Germany are driving much of that growth. This report also demonstrates the huge growth of mobile across Europe, as Eastern countries, like the Czech Republic, are growing at over 250 per cent year-over-year, and mobile is powering the overall market growth. Q1 signaled the start of wedding season with top apparel searches relating to weddings, and we also saw a lot of searches for health-related products like the Nutribullet and Fitbit as people prepare for summer.”

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

Source: BRC

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BRC Chief Executive Helen Dickinson: Another fall in shop prices was seen in February

  • Overall shop prices reported deflation of 2.0% in February from 1.8% in January.
  • Food returned to deflationary territory, falling 0.4% in February from January’s 0.1% rise.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.8%.
  • Non-food deflation remained at 3.0% for the third consecutive month.

LONDON, 2016-Mar-03 — /EPR Retail News/ — BRC Chief Executive, Helen Dickinson OBE, said: “Another fall in shop prices was seen in February, down 2.0 per cent compared with a year ago and a further fall on the numbers we saw in January as competition in the industry continues apace. This now marks the 34th consecutive month of price drops and 35th for non-food prices.

“Within non-food, clothing, footwear, electricals, DIY, and books all saw large reductions in prices while the move back into deflationary territory in the food category confirmed that last month’s marginal rise was just a blip.

“With consumer confidence falling back and wage growth remaining subdued, retailers continue to support their customers with prices and promotions to maintain market share in the tough trading environment.

“Against this back drop we are asking government to work more collaboratively with us to address business rates and ensure the successful implementation of policy measures, such as the National Living Wage and the apprenticeship levy.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said:
“Getting a larger share of the wallet of shoppers continues to a challenge for many food and non-food retailers and competition remains intense on the high street. Food prices continue to fall as Supermarkets are working hard to stimulate sales with price cuts rather than multi-buy promotions, and this is leading to continued deflation in food. With uncertain market conditions, offers and discounts are likely to continue for the time being.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

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British Retail Consortium comments on the relaxation of Sunday Trading hours in UK

LONDON, 2016-Feb-09 — /EPR Retail News/ — Responding to today’s announcement by government that it plans to extend Sunday opening hours by amending the Enterprise Bill, the BRC said: “There are different views across retail over whether the relaxation of Sunday Trading hours is a good or a bad thing for retailers and their staff. This is much more dependent on the structure of individual business than their size or location, which both local government and central government must keep in mind.

“If relaxation is to be implemented, then it is vitally important that it’s done in the right way. We have been encouraging the Government to only devolve these new powers to directly elected mayors of combined authorities in the first instance in addition to implementing crucial safeguards including proper impact assessments, robust community consultation and an appeals process. These are vital given ‘zoning’ appears to still be on the table which would could lead to consumer confusion and the potential for some businesses to be unfairly excluded.”

Helen Dickinson, Chief Executive of the BRC said: “These proposals are unlikely to give retailers and the communities they serve the boost the Government is hoping to deliver. Instead the Government should be concentrating its efforts on finally delivering fundamental reform of the business rates system which would provide much greater support to the reinvention of high streets across the country and particularly in areas which are struggling.

“There is common agreement that an inconsistent approach to these plans without safeguards will be difficult for businesses to manage and confusing for consumers.”

ENDS

For media enquiries please contact Bryan Johnston Bryan.Johnston@brc.org.uk 020 7854 8936

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Non-Food online sales in UK grew 14.9% in January 2016 vs a year earlier – BRC-KPMG

  •  Online sales of Non-Food products in the UK grew 14.9% in January versus a year earlier, when they had risen by 11.7% over the previous year. This is the second best performance since June 2015. January’s online sales performance was ahead of its 3-month and 12-month averages of 14.0% and 12.7%, respectively.
  • In January 2016, Online sales represented 21.5% of total Non-Food sales, against 20.1% in January 2015. This is the second highest penetration rate since the inception of this monitor in December 2012, indicative of the popularity of online shopping during the January sales.
  • Toys & Baby Equipment was the fastest growing category, achieving its best performance since January 2015. This was followed closely by Health & Beauty and Other Non-Food, with the latter reaching its fastest growth rate since August 2014 and making the largest contribution to Online Non-Food sales growth.
  • In January, Online sales contributed 2.4 percentage points to the year-on-year growth of total Non-Food sales, while stores made a larger contribution.

LONDON, 2016-Feb-09 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium, said:“While Online continued to be a key driver of growth for retailers in January, after playing a vital role in driving sales over the Christmas period, overall growth was more balanced across both channels. Online’s contribution to the growth of Non-Food sales in January, 2.4 percentage points, was outperformed by that of Stores. For example footwear and furniture sales experienced more growth in stores than online, a sign that the high street’s attraction remains strong. Online sales were up by 14.9 per cent, close to the Christmas record and the second best performance since June. The top performing non-food category was toys and baby equipment, as the popular lines sold out before Christmas became available again. The penetration rate for online was 21.5 per cent, up slightly on the same month last year, and whilst a couple of categories gave away to the stores a number of others, including clothing, saw their highest ever recorded online penetration rate.”

David McCorquodale, Head of Retail, KPMG, said: “While online growth slowed slightly in January to 14.9 per cent, the popularity of this channel continued from December with penetration rates rising to 21.5 per cent. Retailers encouraged shoppers to beat the back-to-work blues with a variety of seasonal e-promotions. Fashion sales were particularly popular as consumers took full advantage of clearance sales and the colder weather encouraged purchases of heavier knits and woollens.

“As use of online channels continues to increase, retailers continue to invest in their logistics, fulfilment and returns networks to improve the customer experience.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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UK retail sales rose by 2.6% in January 2016 vs the same month last year – BRC-KPMG

  • UK retail sales rose by 2.6% on a like-for-like basis from January 2015, when they had increased 0.2% from the preceding year. On a total basis, sales were up 3.3%, against a 1.6% rise in January 2015. This is the best growth since September, firmly ahead of the 3-month average of 1.6% and the 12-month average of 1.9%.
  • Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 5.1%.
  • All product categories contributed to the growth, apart from Food, which turned slightly negative but the 3-month and 12-month averages for Food stayed unchanged from last month. Furniture topped the growth rankings table, a particularly strong achievement in the most important month of the year for the category.
  • Online sales of Non-Food products grew 14.9% in January versus a year earlier, when they had grown 11.7%. The Non-Food online penetration rate was 21.5%, up 1.4 percentage points from January 2015.

LONDON, 2016-Feb-09 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium, said: “Following on from a somewhat disappointing Christmas period for retailers, the new year kicked off to a strong start, with 3.3 per cent growth across all product categories and 2.6 per cent growth on like-for-like sales. This was the best performance for retailers since September and ahead of the three and twelve month averages.

“January’s performance was driven by big-ticket items, in particular furniture, which is encouraging in the largest month of the year for the category. However, the performance in clothing and footwear was driven by the New Year sales. After seeing a slight recovery in December, food sales were once again slightly down in January, while the mildly positive longer term trends were unchanged.

“Retailers will welcome the positive start to what will be a momentous year for the industry. Next month the Treasury will report back on its long awaited review of the business rates system. This is the moment for the government to rebalance this tax away from property intensive industries in order to ensure that the introduction of the living wage does not have unintended consequences on our local communities and jobs .”

David McCorquodale, UK Head of Retail, KPMG, said: “Fashion and the home drove retail sales to beat the January blues, up 2.6 per cent in the month on a like-for-like basis. After a slow start to the Autumn/Winter season, fashion and footwear sales soared in the early half of the month as promotional pricing caught the eye.

“Furniture and home accessories continued their strong run as the improving property market enjoys its makeover. Following a fairly admirable Christmas, January was also a reasonable month for the grocers with total food and drink sales remaining in the black, just, for the three months November to January.

“Heading into February, retailers will be turning attention to the next big promotional event in the calendar, Valentine’s Day and hoping to take a decent share of consumer spend as they’ll be facing stiff competition from both the experiential and leisure sectors.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC’s Helen Dickinson on retail sales in December: This was very much an online Christmas

  • Online sales of Non-Food products in the UK grew 15.1% in December versus a year earlier, when they had risen by 7.0% over the previous year. This is the best performance since June. December’s online sales performance was ahead of its 3-month and 12-month averages of 12.3% and 12.4%, respectively.
  • In December 2015, Online sales represented 19.7% of total Non-Food sales, against 17.3% in December 2014, meaning almost 1 in 5 pounds was spent online. This is the second highest penetration of 2015, indicative of the popularity of online shopping in the run-up to Christmas and during the early January sales.
  • Toys & Baby Equipment was the second fastest growing category and achieved its best performance since June. This was followed closely by Furniture and Homewares, the latter grew at its fastest rate since the inception of this monitor in December 2012.
  • Online sales contributed 3.0 percentage points to the year-on-year growth of Non-Food total sales in December, the highest on record, while stores made a negative contribution.

LONDON, 2016-1-12 — /EPR Retail News/ — Helen Dickinson, Chief Executive, British Retail Consortium, said: “This was very much an online Christmas with this channel playing a vital role in driving retail sales in December. Growth was up 15.1 per cent, ahead of its 3-month and 12-month averages of 12.3 and 12.4 per cent respectively, and December’s online penetration rate was the second highest of 2015, at 19.7 per cent, up from 17.3 per cent the same time last year. The proportion of online spend was up across all categories we measure with household appliances, footwear and furniture leading the way. Over the three months to December, online contributed 2.5 percentage points to UK non-food growth overall, confirming this channel as the key driver of growth. In fact, store sales were in reverse.

“Click & Collect continued to be instrumental, providing convenience for consumers and equipping smaller format stores with extended product ranges during the busy Christmas period. There were also some knock-on benefits, such as encouraging greater footfall into stores in turn inspiring impulse buys.”

David McCorquodale, Head of Retail, KPMG, said: “With 190% of average rainfall in December, many consumers chose to login rather than walk in over the festive period. There was marked increase in online shopping this year with that channel producing its highest contribution percentage to non-food sales growth compared to a decline in store growth.

“Whilst the weather was one reason for this, another is a significant shift in consumer behaviours with online channel more convenient and logistics and fulfilment networks becoming increasingly slick. The online phenomenon is clearly here to stay and will continue to challenge the role of the store. 2016 will no doubt bring further innovation in this arena as retailers strive to deliver a seamless omni-channel experience.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

SOURCE: British Retail Consortium

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British Retail Consortium: December 2015 saw just 1 per cent retail sales growth YoY

  • UK retail sales rose by 0.1% on a like-for-like basis from December 2014, when they had decreased 0.4% from the preceding year. On a total basis, sales were up 1.0%, against a 1.0% rise in December 2014.
  • Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 3.0%.
  • Total growth was above the 3-month average of 0.9% but weaker than the 12-month average of 1.7%.
  • Total Food sales grew 0.2% over the three months to December and 0.3% over the twelve months. On a three-month basis, total Non-Food sales were up 1.5%, the weakest growth since January 2013.
  • Online sales of Non-Food products in the UK grew 15.1% in December versus a year earlier, when they had grown 7.0%. The Non-Food online penetration rate was 19.7%, up 2.4 percentage points from December 2014.

LONDON, 2016-1-12 — /EPR Retail News/ — Helen Dickinson, Chief Executive, British Retail Consortium, said: “2015 drew to a disappointing close for retailers, with December seeing just 1 per cent sales growth, notwithstanding the strong underlying momentum of an improving consumer environment buoyed by rising real incomes, low inflation and low unemployment. Online performed strongly as consumers embraced the convenience and flexibility that more sophisticated retailers offered. Nevertheless, the boost from online was not enough to make this a Christmas to remember for most retailers. The three month rolling total sales across all categories was the weakest for the entire year, with only 0.9 per cent growth, while non-food saw its slowest performance since January 2013.

“Looking at the year as a whole, the strongest performing categories include those related to the home, supported by a robust housing market, renewed strength in mortgage approvals and a generally healthier appetite among consumer for credit. With price deflation and offers aplenty, the current retail climate is great news for consumers, however retailers are not benefiting from the improved economic climate in the same way that other sectors have done. This is in part due to changing consumer shopping habits and the rising cost of doing business for retailers such as business rates and the national living wage due to be introduced in April. The Government has a prime opportunity in March’s budget to help UK retailers continue to drive growth in the economy and create new jobs by reducing the disproportionate burden of business rates and keep going with its structural review.”

David McCorquodale, Head of Retail, KPMG, said: “Despite a number of positive economic indicators, retail sales over Christmas were relatively flat with more products on discount and the depth of discounting also deeper.

“Although retailers tried to tame Black Friday 2015, it still had a significant impact on the shape of sales over the festive season, spreading spend over six weeks rather than two. Fashion sales were the losers in December as mild weather deferred the need and wet weather deferred the inclination to try and buy a new winter outfit.

“The grocers had a fairly admirable Christmas with total food and drink sales back in the black for the first time since September in spite of the persistent price deflation in the sector.

“December’s star performer was Home Accessories as consumers “decked the halls” with baubles and fairy lights to get into the festive spirit. Children’s Toys also had a good month as Santa delivered to “those who’d been nice” on Christmas morning.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

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BRC Chief Executive, Helen Dickinson: Prices in Britain’s shops have continued to tumble in December 2015

– Overall shop prices reported deflation of 2.0% in December from the 2.1% decline seen in November.

– Food reported annual deflation of 0.3% unchanged from November’s rate.

– On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.

– Non-food deflation decelerated to 3.0% from 3.3% in November.

LONDON, 2016-1-7 — /EPR Retail News/ — BRC Chief Executive, Helen Dickinson, said: “Prices in Britain’s shops have continued to tumble, this month by 2.0%. For the last two years and eight months, customers have been able to fill their baskets, whether virtual or physical, and pay less for their goods than the year before. This is an incredible run of good fortune for shoppers who’ve been preoccupied with picking up presents for family and friends, as well as themselves ahead of the holiday season.

“With retailers continuing to invest in price, relatively low commodity prices and intense competition a hallmark of the industry, we can expect falling prices to continue in the medium term.

“A number of key commodities in the retail supply chain (in particular, oil which is now trading under $40 per barrel) have fallen dramatically recently and the impact of these falls will continue to make its way through to shop prices for some time to come.

“December also marked the 33rd month of non-food price drops. Non-food prices fell by 3.0% – albeit down from 3.3% in November – driven largely by reductions in clothing, footwear, electricals, DIY, gardening and hardware prices. For the 4th consecutive month all non-food categories saw prices fall. While food prices saw less movement, falling by 0.3%.

“Although trading statements are starting to filter through, we will have to wait until next week to learn if the lower priced goods have translated into positive sales for the market as a whole during the all-important Christmas trading period.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “We can expect the current levels of deflation across the retail industry to continue for the first half of 2016. There is little upward inflationary momentum from global commodity or oil prices and locally, the price war in food retailing looks set to continue. After the unseasonably mild autumn and early winter, many non-food retailers will use price cuts and targeted promotions early in the year, to help sell through and to benefit from any rise in real wages.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

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BRC: Helen Dickinson awarded OBE in the New Year’s Honours List for 2016 for services to the retail industry

LONDON, 2016-1-5 — /EPR Retail News/ — Helen Dickinson has been awarded an OBE in the New Year’s Honours List for 2016 for services to the retail industry. Helen has been Chief Executive of the BRC since January 2013, following a successful career working with retailers at KPMG. At the BRC, Helen is a strong advocate of retail, supporting retailers and influencing governments and stakeholders in order to make a positive difference to the industry and the customers it serves.

Helen Dickinson said: ‘I am deeply honoured to receive an OBE – it is a testament to the encouragement and support of the BRC’s members as we have sought to promote and serve the industry and to our great BRC team. I am passionate about the retail industry and its place at the forefront of innovation and social cohesion, touching every aspect of our local communities and the lives of everyone in the country.’

Sir Charlie Mayfield, BRC Chair, said: ‘Helen is a very worthy recipient of this honour. She strives tirelessly to work on behalf of retail, to lead debate and influence policy. The BRC has made great strides since her arrival and we look forward to the future success of the BRC with Helen in the driving seat.’

Ends.

Notes for editors
Helen leads the BRC team and is responsible for the strategic direction and performance of the BRC. The BRC leads the industry and works with our members to shape debates and influence issues and opportunities that will help make a positive difference to the industry and the customers it serves. We care about the careers of people who work in our industry, the communities retail touches and competitiveness as a fundamental principle of the industry’s success – our 3Cs.

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

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BRC: UK implementation of EU Interchange Fee Regulation may see debit card charges rise for some retailers

LONDON, 2015-12-10 — /EPR Retail News/ — UK consumers are set to lose out as a result of today’s decision on fees for consumer debit card payments. The Interchange Fee Regulation, a piece of EU legislation which comes into effect in the UK today, will reduce the hidden ‘interchange’ fees levied by banks on retailers every time a consumer pays by card. Yet the UK implementation may see debit card charges rise for some retailers. Possible savings will be lost and the UK consumer will not see the full potential benefits from lower prices or enhanced services.

The BRC has campaigned for many years against the excessive and hidden credit card fees (amounting to £1 billion per year) imposed on retailers and consumers by the card schemes and banks. The new rules in the UK will reduce credit card fees to 0.3%.

Why the debit cap option is the wrong one
– The EU Regulation gives several options for debit card fee caps. The Treasury has chosen a cap of 0.2% of the value of the transaction, calculated as a ‘weighted average’ of the annual transaction value.
– This means that some retailers taking debit payments may pay more than they pay now. Choosing this option will effectively reverse the intention of the EU law, which is to reduce fees on card payments.
– This could reduce any benefit from caps on credit cards: consumers therefore would see little benefit.
– It is not transparent: retailers will not be able to judge whether or not the fees they have been charged comply with the law. They won’t know, until after the fact, if they have been overcharged.
– The weighted average requires extensive reporting by card schemes and highly complex calculations. This means extra administration for the Payments Regulator, leading to unnecessary costs.

What would be a better option for the UK?
– The UK should choose one of the other options for debit caps allowed by the EU Regulation and set a cap at 0.2% with a maximum fixed cap of 3.5 pence (5 eurocents).
– This would allow retailers to benefit fully from the card fee caps and so offer UK consumers even more competitive prices and enhanced services.
– It would give certainty and clarity for all payment users.
– To help the UK compete in Europe, our payments market needs to keep pace with other countries. Ireland, the Netherlands, Belgium and Denmark have set caps lower than 0.2%.

Helen Dickinson BRC Chief Executive said: “The implementation of card fee caps is long awaited and welcome but the choice of a ‘weighted average’ for debit card fee cap is not the best approach. It will deprive consumers of improved services or even more competitive prices, as UK retailers are prevented from realising the full potential savings from this long-awaited legislation. The BRC will work together with the Regulator on their current study and we trust they will be able to recommend a lower debit card cap as soon as possible.”

Notes to editor:
– The Payment Systems Regulator (PSR) is conducting a full study on card payment fees in the UK and is due to report in spring 2016. BRC members will contribute fully to this study to set out the full impact of the weighted average choice and provide details of all other costs associated with card payments.

ENDS

For media enquiries please contact Laura Blumenthal 020 7854 8924 laura.blumenthal@brc.org.uk

SOURCE: British Retail Consortium

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Online sales of Non-Food products in UK up 11.8% in November vs. a year earlier – BRC-KPMG

  • Online sales of Non-Food products in the UK grew 11.8% in November versus a year earlier, when they had risen by 12.0% over the previous year. November’s online sales performance was in line with its 3-month average of 11.9% and was just ahead of its 12-month average of 11.6%.
  • In November 2015, Online sales represented 22.4% of total Non-Food sales, against 20.3% in November 2014, meaning 1 in 5 pounds was spent online. This is the highest penetration since the inception of this monitor in December 2012, indicative of the popularity of online shopping ahead of Christmas and during the Black Friday sales.
  • Household Appliances achieved its fastest growth since our records began in November 2014 and its highest penetration rate, at 40.8%. Similarly, Health & Beauty reached its strongest penetration rate on record, at 8.0%.
  • Online sales contributed 2.7 percentage points to the year-on-year growth of Non-Food total sales in November, while stores made a negative contribution.

LONDON, 2015-12-9 — /EPR Retail News/ — Helen Dickinson, Chief Executive, British Retail Consortium, said: “Online was an attractive place for shoppers this November with the highest penetration rate on record at 22 per cent, edging closer to people spending £1 in every £4 online across non-food categories. Retailers worked hard to offer attractive targeted Black Friday promotions, which were often extended across several days, as well as enhancing the customer experience by improving website performance, offering user-friendly apps and improving order delivery services. Customers had access to an array of offers, with many retailers personalising their website offerings such as granting loyal customers early access to sales. We spent heavily on household appliances online with the category also seeing its highest penetration rate on record at an impressive 40 per cent. The success of November’s online sales will encourage customers to continue to shop across channels in the run-up to Christmas.”

David McCorquodale, Head of Retail, KPMG, said: “As some retailers sought to play down the stampede of Black Friday and put fighting in the aisles behind them, the consumer too shied away from the High Street to click into Christmas from the phone or tablet. This year’s was certainly an online Black Friday, which drove penetration levels to an all-time high of 22.4 per cent.

“Retailers will delight in systems that were able to withstand the peak demand but will yet have to count the cost of meeting delivery deadlines and handling returns next month before they know if this has been a profitable venture or a giveaway gesture.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk

SOURCE: British Retail Consortium

 

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UK retail sales in November 2015 decreased 0.4% on a like-for-like basis from November 2014 – BRC-KPMG

    • UK retail sales decreased 0.4% on a like-for-like basis from November 2014, when they had increased 0.9% from the preceding year. On a total basis, sales were up 0.7%, against a 2.2% rise in November 2014. Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 2.2%.
    • Total growth was below the 3-month average of 2.0% and the 12-month average of 1.7%. Half of the RSM categories showed year-on-year growth on a total basis but, excluding online sales, only two categories showed growth in stores, Furniture and Home Accessories.
    • Total Food sales grew 0.1% over the three months to November and 0.3% over the twelve months, but declined for the month. On a three-month basis, total Non-Food sales were up 3.5%, ahead of their twelve-month average of 2.9%.
    • Online sales of Non-Food products in the UK grew 11.8% in November versus a year earlier, when they had grown 12.0%. The Non-Food online penetration rate was 22.4%, up 2.1 percentage point from November 2014 and the highest on record.

LONDON, 2015-12-9 — /EPR Retail News/ — Helen Dickinson, Chief Executive, British Retail Consortium, said: “With growth of 0.7 per cent, November was quite a slow month overall for retail. The picture was somewhat mixed when we look across the different categories, with half experiencing growth and the other half seeing a decline. Furniture and the home categories were the main drivers of growth for the month, with large and small electrical appliances doing particularly well, driven by Black Friday sales. Black Friday had an undoubtedly significant impact for the non-food categories, disturbing the build-up to Christmas: traditionally, sales in the last week of November were 25 per cent larger than in the first week of the month. Last year already, those sales were inflated by the popularity of Black Friday deals and this year, they were 50 per cent larger than in the first week of November.

“As consumers and retailers continue to adapt to the changing patterns of omni-channel shopping, where the lines between channels become less and less relevant, this build-up to Christmas is one of the hardest to read in years. The conversion of people’s higher disposable income into retail sales shouldn’t be taken for granted.”

David McCorquodale, Head of Retail, KPMG, said: “November’s relatively flat sales figures are a reality check for the retail sector with consumers holding off for a Black Friday bargain pitted against retailers determined to hold onto their hard-earned margins. The result was that, despite the hype around Black Friday, there was minimal loosening of the family purse strings compared to last year and retailers, facing significant cost increases next year, will be striving to wean UK shoppers off the discounting drug.

“Detailed examination of November trading shows a slowdown in most categories as consumers held off purchases in the hopes of a deluge of Black Friday discounts. Whilst many retailers participated, categories which saw the biggest uplift on the day were the electricals ones where, I suspect, the discounting pain was borne by supplier and retailer alike. In clothing and footwear, brands tended to hold their nerve to retain margins.

“While Black Friday ended up being more of an online affair, the focus over the next few weeks is to promote the theatre of the store for Christmas in the hopes that the tills will be ringing all the way into the New Year.”

Food & Drink sector performance – Joanne Denney-Finch, Chief Executive, IGD, said: “Food and drink plays only a small part in Black Friday and so the bulk of attention was directed elsewhere in November. It was an uneventful month for grocery sales although beers, wines and spirits enjoyed a strong uplift in the final week, helped by price promotions.

“The spotlight will now fall on the grocery sector and all signs point towards a ‘multichannel Christmas’ with spending spread across a variety of formats. Supermarkets will remain the most popular destination but seven in ten shoppers say they will use discounters for some of their Christmas food shopping and a fifth will order online.”<

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk

SOURCE: British Retail Consortium

 

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BRC-NIELSEN: Shop prices fell by 2.1% in November from a 1.8% decline in October

  • Overall shop prices reported deflation of 2.1% in November from a 1.8% decline in October, a joint record low.
  • Food reported annual deflation of 0.3% from a 0.4% fall in October.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
  • Non-food deflation decelerated to 3.3% from 2.7% in October.

LONDON, 2015-12-4 — /EPR Retail News/ — BRC Chief Executive, Helen Dickinson, said: “Shop prices fell by 2.1% last month as a result of retailers continuing to invest in price, intense competition in the run up to Black Friday and lower commodity prices, marking a joint record low for falling prices (with March 2015).

“November also marked the 31st consecutive month of deflation and the 32nd consecutive month of non-food price drops. Non-food prices saw a remarkable 3.3% drop, driven largely by reductions in clothing, footwear, electricals, DIY, gardening and hardware prices. Although the survey period does not cover Black Friday, it is likely that some retailers were discounting early in November in order to spread consumer spending over a longer period. Electricals for instance saw prices down 4.3% on last year.

“Food prices fell by 0.3% as the impact of past falls in oil, weaker demand in emerging markets and a strong pound, helped support a continued deflationary environment. Lower commodity prices will help food retailers to continue to offer the best possible prices. Coffee, lean hogs, soybean, and cattle feeder all demonstrated double digit declines in the 12 months to the end of our survey period.

“This trading environment should be considered with the impact of the industry’s regulatory burden. BRC analysis shows that the combined cost of policy announcements since the General Election adds up to approximately £14 billion over the next five years. The industry will continue to make the case to government, which has extended its review of business rates to early 2016, to properly look at rebalancing this tax away from property intensive industries in order to ensure that the introduction of the living wage does not have unintended consequences on our local communities and jobs .”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “For best part of two years we have had shop price deflation which has helped overall consumer spend remain buoyant, and with consumer confidence back to an all-time high, shoppers are now feeling more optimistic about spending. Falling prices across the High Street and food retailers in November will be another welcome boost for shoppers as they plan their Christmas spending.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk

SOURCE: British Retail Consortium

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BRC/SPRINGBOARD: Retail park footfall increased 2.9% YoY in October 2015

  • Footfall in October was 0.2% lower than a year ago, unchanged from the decline in September. This was above the three-month average of -0.6%.
  • Footfall in retail park locations increased 2.9% year-on-year. This is below September’s high of 4.0%.
  • High Streets and Shopping Centres reported a decline in footfall of 1.0% and 1.3% respectively.
  • Four regions in England reported positive footfall growth in October, the East Midlands continuing its strong performance.
  • The national town centre vacancy rate was 9.1% in October 2015, down from the 9.8% rate reported in July 2015. This is the lowest reported rate since we began reporting the data in July 2011.

LONDON, 2015-11-16 — /EPR Retail News/ — Helen Dickinson, BRC Chief Executive, said: “The locations consumers are choosing to shop remains in a state of flux. While the rate of decline in footfall across high streets and shopping centres appears to have stabilised, more and more shoppers are choosing to visit retail parks which offer a greater mix of leisure and retail.

“There is a little cheer in the news that vacancies have fallen once again. However in order for this good news to be sustainable, action is urgently needed to reform business rates. Otherwise the new occupants of these premises will, in the not too distant future, find themselves struggling under the weight of ballooning bills. If the burden of business rates continues to grow as it has in the past, today’s vacancy figure may become but a distant, happy memory. Action now will ensure our high streets remain vibrant and viable long into the future.”

Diane Wehrle, Marketing and Insights Director at Springboard, said: “October is fast becoming an important ‘look and compare’ month for shoppers ahead of Black Friday and Cyber Monday, which is driving up footfall across all retail destinations. Footfall may have remained relatively unchanged for October from September but over the last two years as the importance of Black Friday and Cyber Monday grows, we are seeing a significant increase in footfall for the month of October from -2.9 per cent in 2013 to -0.8 per cent in 2014 and this month’s -0.2 per cent.

“Additionally the UK vacancy rate of 9.1 per cent is the lowest on record [since July 2011] and this is undoubtedly helping retain footfall across all retail destinations – this is a longer trend to watch.

“This contrasts with expectations at the beginning of the year, when the unprecedented number of retail leases expiring this year suggested that the vacancy rate would increase. However, after a long period of recession and low demand for additional space from retailers, alongside the growth of leisure and food and beverage and multi-channel shopping, landlords have been forced into being more flexible about who they are prepared to accept as tenants and on what terms – no longer able to demand the strength of covenant they were once able to, we are now seeing a broadening of occupier types in high streets and shopping centres which can only be for the good.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC-KPMG: UK retail sales increased 2.6% in Sep 2015 vs the same month 2014

– UK retail sales increased 2.6% on a like-for-like basis from September 2014, when they had decreased 2.1% on the preceding year. On a total basis, sales were up 3.9%, against a 0.8% fall in September 2014. This is the fastest growth since January 2014, excluding Easter distortions. Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 5.8%.

– The inclusion of the Bank Holiday into the September period positively distorted the figures of the back-to-school-sensitive categories, particularly the fashion and home categories. September’s figures were also flattered by a soft comparable period last year.

– Total Food sales grew 0.2% over the 3 months to September, in line with their twelve-month average, which reported its best performance since July 2014. On a 3-month basis, total Non-Food sales were up 3.7%, ahead of their 12-month average of 3.3%.

– Online sales of Non-Food products in the UK grew 14.2% in September versus a year earlier, when they had grown 8.2%. The Non-Food online penetration rate was 17.7%, up from 17.2% in September 2014.

LONDON, 2015-10-13 — /EPR Retail News/ — Helen Dickinson, Chief Executive Officer, British Retail Consortium, said: “September was a bright month for retail, with the strongest sales performance since January of last year, excluding Easter distortions. However, sales growth was boosted by the August Bank Holiday, which fell in this period as opposed to August last year, shifting back-to-school sales into September, so such strong growth is likely to be overstated. September’s figures were also flattered by a soft comparable period last year, which was the worst performance of 2014. The three month average growth for non-food was 3.7 per cent, ahead of the 3.3 per cent twelve month average. Furniture was September’s top performing category, with the highest sales seen since April of 2014. Footwear, the second best performing category, had its best performance since March of last year.

“There was good news for food sales too, thanks in no small part to the Rugby World Cup. Food had, in real terms, its highest twelve month average sales since February of 2011, which is particularly positive news following a prolonged period of decline. Retailers are seeing some improved consumer demand but they continue to operate in a very competitive environment. They are looking to Government to lighten the excessive tax burden they face.”

David McCorquodale, Head of Retail, KPMG, said: “With the summer bank holiday falling into September, top line trends for the month were inevitably inflated with total sales up 3.9 per cent compared to 2014. However, taking the 3 months July to September, total sales across all categories also showed a bounce back, up 2.2 per cent in the period suggesting a stronger finish to the British summer overall.

“Fashion sales were given a particular boost in September with more autumnal weather encouraging shoppers to check out the new season ranges and last minute back-to-school purchases lifting sales of children’s clothes and shoes. Home and furniture also benefited from the bank holiday timing as consumers took the opportunity to fit in a bit of redecorating.

“Despite the start of the Rugby World Cup encouraging people to get the beers and burgers in, food and drink sales showed no signs of accelerating in the three months July to September. Grocers will be hoping that consumers will continue to revel in the atmosphere in spite of England’s early exit from the tournament.
“Moving into the final quarter of 2015, retailers will be keeping a watchful eye on Christmas with the launch of festive campaigns starting to wet consumers’ appetites and Black Friday expected to be big again.”

Food & Drink sector performance – Joanne Denney-Finch, Chief Executive, IGD, said: “In recent months food and drink sales have tended to vary a little above or a little below last year’s figure, and September’s performance was almost flat. However, this disguises a huge amount of change taking place. The UK grocery market continues to provide shoppers with more options, including food to go, online, discount and convenience shopping. The major players are also investing in revitalising their stores. The result is three quarters of grocery shoppers are very satisfied with their overall experience; 57 per cent say they like shopping for food, up from 43 per cent seven years ago.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC-KPMG: Non-Food products sales online in UK grew 14.2% in September

– Online sales of Non-Food products in the UK grew 14.2% in September versus a year earlier, when it had risen by 8.2% over the previous year, the second-slowest growth of 2014. This is ahead of the 12-month average of 12.1%.

– In September 2015, Online sales represented 17.7% of total Non-Food sales, against 17.2% in September 2014, a 0.5 percentage point increase, the smallest since April 2014.

– Furniture saw the second-highest growth of all categories and its best since our record began, helped by the positive distortion of the Bank Holiday inclusion in the September period. The fashion categories contributed the strongest to Non-Food growth, helped by a soft comparable in September 2014.

– Online sales contributed 1.4 percentage points to the year-on-year change of Non-Food total sales in September. Stores contributed more than Online, helped by the inclusion of the Bank Holiday in the period.

LONDON, 2015-10-13 — /EPR Retail News/ — Helen Dickinson, Chief Executive Officer, British Retail Consortium, said: “Although bricks and mortar shops were the stars this month with great sales strength, online is proving itself to be a successful steady contributor to overall sales all year round. September’s online furniture sales were particularly fruitful with the best sales growth since records began in December 2012. Some exclusively online retailers are now opening physical shops in attempts to connect with more customers and showcase products in the way only shops with a front door can.”

David McCorquodale, Head of Retail, KPMG, said: “Online sales sprung back up in September with non-food online sales increasing 14.2% as consumers returned from summer holidays and some bouts of wetter weather persuading shoppers to browse the virtual aisles rather than hitting the high streets.

“In particular, retailers saw positive responses to both end-of season-sales as well as the launch of new ranges for health and beauty products.

“Looking ahead, retailers will no doubt be putting online systems through their final paces to ensure all the channels are ready for the all-important Black Friday and run up to the festive season.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC Director Dickinson: September saw significant prices drops in both food and non-food goods

  • Overall shop prices reported deflation of 1.9% in September from a 1.4% decline in August.
  • Food reported annual deflation of 0.5% from a 0.2% rise in August.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
  • Non-food deflation accelerated further to 2.9% from 2.4% in August.

LONDON, 2015-10-7 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said: “September saw significant prices drops in both food and non-food goods marking the 29th consecutive month of falling shop prices.

“The temporary fluctuation of annual food price rises has come to an end with food returning to deflationary territory. Prices fell by 0.5 per cent with fresh food falling deeper than last month – by 1.5 per cent – while ambient prices rose by 0.8 per cent.

“Overall, shop prices fell by 1.9 per cent this month, largely driven by competition and great deals across a large number of categories. Non-food prices fell even faster than the previous month, reporting drops from 2.4 per cent in August to 2.9 per cent in September. Heavy discounting could be seen in electricals, books, stationery and home entertainment. It was a particularly good month to hunt for bargains in clothing and footwear with prices falling by 6 per cent in this category.

“While consumer confidence slowed slightly the fortuitous mix of near flat inflation and falling prices in both food and non-food will help to maintain retailers confidence for the foreseeable future.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “It`s good news for shoppers that shop prices are again lower than a year ago in supermarkets and this will help stimulate spending in the important last quarter of the year. This will allow shoppers to plan with more confidence when juggling the household budget. Within food retailing, there is still downward pressure on prices and this is expected to continue as supermarkets battle for the wallets of the Christmas shopper, whilst on the high street, many non-food retailers are using strong, seasonal promotions to drive sales growth.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

 

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BRC/SPRINGBOARD: Footfall in August 1.6% lower than a year ago

  • Footfall in August was 1.6% lower than a year ago, down from the 1.1% fall in July. This was below the three-month average of -1.4%.
  • Both High Streets and Shopping Centres reported a decline, falling 2.3% and 2.8% respectively. Footfall in Shopping Centres is now the lowest since January excluding Easter distortions.
  • Footfall in Retail Park locations increased 1.7% year-on-year. This is the slowest increase since May 2015 and significantly below the three-month average of 2.5%.
  • Nine regions and countries reported a decline in footfall, four of which had a footfall rate lower than the UK average.
  • The East Midlands was the only region to report positive footfall growth, albeit marginally (0.04%).

LONDON, 2015-9-15 — /EPR Retail News/ — Helen Dickinson, British Retail Consortium Director General, said: “The continued decline in footfall in shopping centres and on the high street is disappointing, but not surprising. The fact that the number of visitors to retail parks has dipped below the three month average is also a clear sign of a lack-lustre August. However, it is worth noting that these figures do not take into account the last two days of August (the Sunday and Bank holiday Monday) which will, hopefully, add some cheer to the numbers in September.

“These numbers are a clear demonstration of the continued pressures the UK retail industry is facing. We know that retailers are steadily maintaining sales but at lower prices and to fewer people visiting physical stores.

“As we start the long march to Christmas, retailers will want to see an increase in shopper numbers in all store locations. Most will also be hoping for a decrease in any financial or regulatory burdens heading their way from government. These only make the job of getting the right products to UK consumers at the right price harder at a time when the hurdles to running a successful retail business are high enough.”

Diane Wehrle, Marketing and Insights Director at Springboard, said: “It is clear that high streets and shopping centres are under increasing pressure once again – August was the third month in a row in which footfall in high streets dropped by more than 2 per cent, and this has been the case in shopping centres for the past five months.

“Footfall in retail parks continued its inexorable rise, albeit at a lower rate than in both July this year and in August last year. However, this is likely to be just a short term hiatus, as August this year only included the Saturday of the Bank Holiday weekend when footfall increased by 3 per cent compared with a rise of more than 6 per cent over the Sunday and Monday. So the probability is that in September UK footfall will bounce back from the -1.6 per cent recorded in this August to at least equal the more modest 0.9 per cent drop recorded in September 2014.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

SOURCE: British Retail Consortium

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BRC Helen Dickinson on BRC-NIELSEN AUGUST 2015 SHOP PRICE INDEX: Shop prices fell by 1.4 as a result of intense competition and falling commodity prices

  • Overall shop prices reported deflation of 1.4% in August unchanged from July.
  • Food reported annual inflation of 0.2%, up marginally from the 0.1% rise in July 2015.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
  • Non-food deflation accelerated further to 2.4% from 2.3% in July.

LONDON, 2015-9-11 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said:”Shop prices fell by 1.4 this month as a result of intense competition and falling commodity prices, which is good news for consumers who have seen 28 consecutive months of prices drops.

“Annual food prices rose for a second month but once again the rise was marginal, by just 0.2% year-on-year, and is likely to be a temporary fluctuation in a longer term downward trend driven by ongoing competition.

“August marked the 29th month of falling non-food prices. Clothing retailers discounted heavily in an attempt to shift stock with prices falling on average by 5.4 per cent. Furniture and Flooring saw a sharp deceleration in deflation to 1.2%. Great deals could be found in Books, Stationery and Home Entertainment. Prices throughout this category fell on average by 5.2 per cent.

“The latest CPI rate turned positive, after hovering around zero for the last six months. Although this inflation rate – which includes services, utilities, leisure and petrol – could fall back again, partly due to the drop in the price of oil, which has slumped by nearly a quarter in the past two months.”

“A relatively benign economic environment and a fiercely competitive market will see retailers continue to respond to their customers with prices and promotions to maintain market share.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Consumer confidence continues to increase but many shoppers are still unable or unwilling to spend freely, so retailers are continuing to offer high levels of promotions and price cuts. The underlying trend is for price deflation across both food and non-food retail and with shoppers now back from summer holidays we can expect some good deals and attractive pricing for shoppers over the next few weeks.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

 

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BRC-KPMG: Non-Food online sales in UK grew 6.5% in August vs a year earlier

– Online sales of Non-Food products in the UK grew 6.5% in August versus a year earlier, when it had risen by 19.8% over the previous year, the strongest growth of 2014. This represents the slowest online growth since April 2013.

– In August 2015, online sales represented 17.2% of total Non-Food sales, against 16.3% in August 2014.

– All categories continued to show online growth despite experiencing a slowdown, with Household Appliances recording its slowest online growth since our records began in November.

– Online sales contributed 1.4 percentage points to the year-on-year change of Non-Food total sales in August. Without online, the August Non-Food decline would have been more severe.

LONDON, 2015-9-8 — /EPR Retail News/ — Helen Dickinson, Director General, British Retail Consortium, said: “August was always going to be tough in comparison to last year which had seen the fastest growth since our online monitor started in November 2012, driven by very strong fashion sales. To make things worse, the summer bank holiday fell outside this month’s coverage, when a lot of people would have bought back-to-school clothes and back to university furnishings. Combined, those factors led to the slowest online growth for non-food since April 2013.

“Retailers continue to invest to offer a fast and good value online service and are now focusing even more on optimising delivery efficiency. For example, they are grouping multiple orders, offering next day delivery for a limited period or free delivery only above a certain basket size. This is being managed in what remains an extremely competitive environment where margins are under pressure from deflation in shop prices and rising operating costs. Consumers therefore are continuing to get great value.”

David McCorquodale, Head of Retail, KPMG, said: “With the summer bank holiday delaying purchases and many consumers jetting off out of the UK in search of warmer climates, August saw a slowdown in e-commerce growth across almost all categories with non-food online sales up just 6.5 per cent versus 2014.
“Despite this, online penetration rates remain stable at 17.2 per cent and retailers will be hoping for cooler autumn weather to entice consumers back to the virtual aisles ahead of the Christmas rush.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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British Retail Consortium: better news for food sales this August with a clear improvement compared with July

  • UK retail sales decreased 1.0% on a like-for-like basis from August 2014, when they had increased 1.3% on the preceding year. On a total basis, sales were up 0.1%, against a 2.7% rise in August 2014.
  • In the three months to August, total Food sales were up 0.3%. The twelve-month average total Food growth turned positive for the first time since August 2014. Non-Food sales declined in August, for the first time since August 2014.
  • The fall of the Bank Holiday into the September period this year distorted the figures of the back-to-school-sensitive categories. Clothing, Footwear, Stationery, Furniture, Household Appliances experienced declines.
  • Online sales of Non-Food products in the UK grew 6.5% in August versus a year earlier, when they had grown 19.8% and established the 2014 best performance. This was the slowest growth registered since April 2013. The Non-Food online penetration rate was 17.2%, up from 16.3% in August 2014.

LONDON, 2015-9-8 — /EPR Retail News/ — Helen Dickinson, Director General, British Retail Consortium, said: “There was better news for food sales this August with a clear improvement compared with July. This, coupled with a positive twelve month average for the first time since August of last year, suggests there may be cause for optimism for food sales following a prolonged period of stagnation.

“While non-food sales over the last three months are up three per cent overall, they were down in August. However the figures were likely distorted by the fact that they do not include the Bank Holiday which will be accounted for in the September period this year. At this time of the year parents are busily shopping for back-to-school essentials like clothes, footwear and stationery and those sales will peak later this year. Large ticket item categories like furniture and household appliances also experienced a decline in sales, again likely affected by the Bank Holiday distortion.

“Retailers will hope to recoup that sales deficit in September and to start feeling the effect of higher real wages.”

David McCorquodale, Head of Retail, KPMG, said: “As the summer bank holiday fell a week later this year, sales were pushed into September meaning top-line trends for August were inevitably dampened (along with the weather) versus 2014.

“Overall, August sales were down 1% on a like-for-like basis with fashion and footwear hit particularly hard as families delayed back-to-school purchases and wet weather deferred the impetus to shop. Furniture spending also fell due to the timing of the bank holiday.

“The grocers however, fared slightly better, with total food sales showing a positive direction of travel over the three months from June.

“September sales will get a shot in the arm from the bank holiday and the comradery of the Rugby World Cup. However, the fashion world will be hoping that last year’s ‘Indian summer’ does not repeat itself, resulting in heavy discounting to move seasonal items.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

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BRC-KPMG RETAIL SALES MONITOR JUNE 2015: UK retail sales increased 1.8% on a like-for-like basis from June 2014

– UK retail sales increased 1.8% on a like-for-like basis from June 2014, when they had decreased 0.8% on the preceding year. On a total basis, sales were up 2.9%, against a 0.6% rise in June 2014. This is the strongest growth since January 2014, excluding Easter distortions and compares with a 12-month average of 1.6%. Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 4.2%.

– Total Food sales grew again in June for the seventh month in a row, excluding Easter distortions, ahead of their 0.3% decline over the last 12 months. Total Non-Food sales grew 2.6% over the 3 months to June, close to their 12-month average growth of 3.1%.

– Toys & Baby Equipment was the best performing category, helped by outdoor toys, particularly in the last week of the month, when the heat wave stimulated the sales of all seasonal items. Fashion categories were helped by several retailers going into summer sale earlier than last year.

– Online sales of Non-Food products in the UK grew 17.6% in June versus a year earlier, when they had grown 10.6%. The Non-Food online penetration rate was 18.4%, up from 16.9% in June 2014.

LONDON, 2015-7-14 — /EPR Retail News/ — Helen Dickinson, Director General, British Retail Consortium, said: “The retail industry performed strongly last month, experiencing the best overall sales growth in eighteen months, excluding Easter distortions, albeit on the back of a weak June last year. Food sales grew for the seventh month in a row, while June also brought with it a boost for the non-food categories, with furniture doing particularly well. Fashion sales were also up, but this was likely helped by several retailers entering summer sales a little earlier this year. The last week of June ended the month on a high note, with seasonal items like outdoor toys in high demand.

“We saw welcome signs of growing consumer confidence, with people more willing to ‘trade-up’ and spend a bit more on big-ticket purchases, likely boosted by the growth in the supply of credit and other factors such as low inflation and rising real incomes. Some of the measures outlined by the Chancellor in last week’s budget are likely to help boost consumer confidence even further, with measures like the continued freeze in fuel duty and the increased personal tax allowance ensuring consumers have more money in their pockets to spend. We also welcome the Chancellor’s focus on increasing productivity. This is of crucial importance to enhancing retailers’ ability to continue to serve their customers better.”

David McCorquodale, Head of Retail, KPMG, said: “As the Wimbledon tennis championships got underway, June served up an ace for sales of non-food items. After cooler May weather had dampened fashion sales, the glorious sunshine and some significant promotional activity this month lured consumers into a rush to update summer wardrobes. Men’s fashion and footwear sales were also given a particular boost as Dads were treated to something special on Father’s Day.

“Elsewhere, sales of Toys & Baby Equipment bounced up towards the end of the month with seasonal outdoor ranges such as paddling pools and trampolines soaring as consumers looked to make the most of June’s heatwave. The grocers continued to fight to make headway against a deflationary tide. The quarterly decline is distorted by the timing of Easter and I expect to see a better picture emerge next month.

“Moving into July, many eyes will be trained on sector share prices after the market reacted strongly to a number of surprise announcements, particularly around the living wage, in the Chancellor’s Summer Budget. However, with Murray-mania having once again swept the nation, another heatwave on the horizon, and school holidays imminent, retailers will be hoping that the nation’s feel good factor will continue all summer long.”

Food & Drink sector performance – Joanne Denney-Finch, Chief Executive, IGD, said: “June’s food and drink sales were encouraging, especially if judged against the same time last year when the men’s football World Cup provided a brief boost to sales. The heatwave in the final week definitely helped this year’s performance.
“Wages have now outpaced inflation for eight consecutive months and although a quarter (26 per cent) of shoppers still expect their personal finances to deteriorate over the next 12 months, this is a big improvement on the 47 per cent predicting the same in June 2012. With deflation also easing, there are various reasons to believe that food retail sales might have turned a corner although optimism is tempered by the many uncertainties in the global economy.”

Online % change
year-on-year
June 2015 17.6%
June 2014 10.6%
6m average 12.7%
12m average 12.6%

NOTE: More details about online sales can be found in the Online RSM published simultaneously with the RSM.

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC-KPMG: Online sales of Non-Food products in UK grew 17.6% in June vs a year earlier

– Online sales of Non-Food products in the UK grew 17.6% in June versus a year earlier, when it had risen by 10.6% over the previous year. This is the best online performance since August 2014 and outperformed the 3-month and 12-month averages of 14.6% and 12.6%, respectively.

– In June 2015, online sales represented 18.4% of total Non-Food sales, against 16.9% in June 2014, the highest penetration rate since January.

– Online growth in the Clothing and Footwear categories ranked among the top three in June, while Toys & Baby Equipment also had a successful month, reporting their fastest online growth since January.

– Online sales contributed 2.1 percentage points to the growth of Non-Food total sales in June. Compared to Stores, Online now consistently contributes more to 3-month average Non-Food sales growth, and over the three months to June 2015, made its greatest percentage contribution since December 2013.

LONDON, 2015-7-14 — /EPR Retail News/ — Helen Dickinson, Director General, British Retail Consortium, said: “Online retail sales have experienced the best growth since August 2014, largely driven by fashion promotions. As ever, websites are popular during the sales, providing greater clarity of stock availability for consumers. For retailers, online is an increasingly useful tool to reach customers selectively and showcase their offer. Online sales strength is also shown in the fact its contribution to three month non-food sales growth has reached its highest proportion since December 2013. This highlights the variety of digitally focused roles in the retail industry. It also shows the increasing demand for skilled people to develop sophisticated online operations and a seamless connection between physical and digital space.”

David McCorquodale, Head of Retail, KPMG, said: “Non-food online sales soared to record levels in June, up 17.6% – the highest level of growth this year – as the real benefits of the virtual aisle shone through. With temperatures soaring, consumers chose to click for summer fashion and festival chic rather than swelter on the high street.
“Unsurprisingly online sales in the Health & Beauty sector saw a particular boost as shoppers topped up on sun cream and beauty essentials to stay safe from the sun’s rays.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

 

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BRC-NIELSEN SHOP PRICE INDEX: Shop prices fell by -1.3 per cent in June 2015; 26th consecutive month of prices drops

– Overall shop prices reported deflation of 1.3% in June up from 1.9% in May.

– Food reported annual deflation of 0.4% the lowest deflation rate since February 2015.

– On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.

– Non-food deflation slowed to 1.9% in June from 2.5% in May.

LONDON, 2015-7-8 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said: “Shop prices fell by -1.3 per cent this month marking the 26th consecutive month of prices drops. This is a slight slowdown in falling prices when compared with recent months.

“Consumer confidence hit a 15 year high which suggests that shoppers will feel more comfortable about buying major purchases. It also suggests that consumer spending, one of the main drivers of the recovery, should remain robust over the summer.

“While non-food prices fell at a slower rate this month (-1.9 per cent against -2.5 per cent in May), June marked the 27th month of non-food deflation. Shoppers wishing to invest in their home won’t be disappointed with great deals to be found in furniture and flooring and gardening and hardware in particular.

“Food has been deflationary throughout 2015 but the pace slowed in June, largely as the result of the rebound of oil prices in recent months.

“We’re seeing a strong appetite for consumer credit, inflation remains at an historic low, unemployment continues to fall and wages have started to rise, the wider macro-economic data continues to be supportive for the consumer.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Retailers continue to use price cuts and promotions to stimulate sales which is helping to maintain shop price deflation, and we see little evidence to suggest that prices will rise in the near future. With many food retailers still using price cuts to attract new shoppers, this is lowering the cost of the weekly shop and so the overall CPI figure in the UK. Deflation and price led competition will continue to be a key driver of sales growth for some time yet”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

 

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BRC/SPRINGBOARD FOOTFALL AND VACANCIES MONITOR: Footfall in May was 1.0% lower than a year ago, down from the 0.8% fall in April

– Footfall in May was 1.0% lower than a year ago, down from the 0.8% fall in April. This was below the three-month average of -0.5.

– Both High Streets and Shopping Centres reported a decline, falling 1.5% and 2.0% respectively.

– Footfall in out-of-town locations fared the best with a 1.4% increase year-on-year, an improvement on the 0.5% rise in April and a continuation of its positive trend.

– Three regions reported positive footfall growth, with the greatest rises seen in the East and Greater London.

– All three nations reported a decline in footfall in May, with Wales reporting the most notable fall (-4.3%), significantly below the UK average.

LONDON, 2015-6-15 — /EPR Retail News/ — Helen Dickinson, British Retail Consortium Director General, said: “The pace of change in the way we shop shows no sign of slowing. In fact, today’s figures show the rate of decline in shopper numbers on our high streets and in shopping centres has slightly increased. Local government, town centre managers and retailers will need to continue to work together to refine their high street offer and give customers practical, positive reasons to return.

It’s vital that central government plays its part too. Retail can have a crucial role in delivering the Chancellor’s ambitious northern powerhouse. But with shopper numbers in decline across the north, there is some distance to travel before our contribution will be realised. The BRC continues to ask the Chancellor to call time on the current business rates system which is stifling retailers ability to invest. If he takes bold action on rates in his upcoming Budget, a crucial barrier to retailers driving growth in the north and across the rest of the UK, will finally have been removed.

Diane Wehrle, Marketing and Insights Director at Springboard, said: ‘’The 1.0 per cent drop in footfall in May – a slight dip from the 0.8 per cent decrease in April – was driven by a worsening of high street footfall performance from a 0.1 per cent decline in April to a 1.5 per cent decline in May. Shopping centre footfall improved from a 3.0 per cent decline in April to a 2.0 per cent decline in May, however, this still leaves shopping centres with a reduced footfall.

‘’The negative position of high streets and shopping centres is in sharp contrast with the positive footfall result of 1.4 per cent in retail parks. Recording an increase in footfall for the past 17 consecutive months which has averaged 2.2 per cent, retail parks are clearly the winners in the grab for consumers across bricks and mortar retail destinations. This brings into sharp contrast the long term downward trend in high streets and shopping centres, where out of the last 17 months footfall has fallen in all but one month in high streets and two months in shopping centres.

‘’The success of retail parks is undoubtedly a function of owner driven change that has led to the introduction of a family based leisure offer in many out of town locations that previously fulfilled a purely functional role. This, in combination with plentiful and free car parking has enhanced the attraction of retail parks and improved their efficiency as click and collect locations for the ever increasing number of omni-channel shoppers. The high cost of parking in high streets and shopping centres, together with elongated travel times due to congestion means that urban destinations are at an obvious and increasing disadvantage.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

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BRC-KPMG: Online sales of Non-Food products in the UK grew 9.9% in May versus a year earlier

LONDON, 2015-6-10 — /EPR Retail News/ — BRC-KPMG: Online sales of Non-Food products in the UK grew 9.9% in May versus a year earlier

– Online sales of Non-Food products in the UK grew 9.9% in May versus a year earlier, when it had risen by 17.0% over the previous year. This tough comparative explains why May falls behind the 12-month average growth of 11.9%. In May 2015, Online sales represented 17.4% of total Non-Food sales, against 16.2% in May 2014.

– Online growth in Furniture and Household Appliances accelerated over their April performance, while the Fashion categories suffered the most from the strong comparative in May 2014.

– Online sales contributed 1.4 percentage points to the growth of Non-Food total sales in May. The 3-month average contribution of online sales represented over 60% of Non-Food growth, in sharp contrast with May 2014, when it represented less than 40%.

Helen Dickinson, Director General, British Retail Consortium, said: “Positive consumer confidence was illustrated in May by good growth in big ticket items such as furniture and domestic appliances, particularly online. At 9.9 per cent May’s online growth is below the twelve-month average rate of 11.9 per cent. However, it must be kept in mind that May 2014 had one of the strongest online growths of 2014 thanks to record fashion sales, so it is a tough comparison.

“Over the last 12 months online has contributed more to non-food sales growth than bricks and mortar stores, rewarding the substantial investment retailers have piled into new channels in recent years.”

David McCorquodale, Head of Retail, KPMG, said:“Against particularly strong comparables last year, May’s online growth rate has tapered off slightly compared to April.

“However, the popularity of online shopping continues to grow with the three-month average growth rate up to 12.5 per cent and online penetration up across all sectors. As investment being made by many retailers in omnichannel systems remains unabated, this reflects the continued importance of this channel for consumer and retailer alike.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC-KPMG: UK retail sales in May 2015 were flat on a like-for-like basis from May 2014

LONDON, 2015-6-10 — /EPR Retail News/ — BRC-KPMG: UK retail sales in May 2015 were flat on a like-for-like basis from May 2014

– UK retail sales were flat on a like-for-like basis from May 2014, when they had increased 0.5% on the preceding year. On a total basis, sales were up 1.1%, against a 2.0% rise in May 2014 and behind the 3-month and 12-month averages of 1.8% and 1.4% respectively. Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 3.0%.

– Furniture was the top performing category and achieved it best growth since July, barring Easter distortions. The Clothing and Footwear categories were amongst the worst performing, reporting their deepest declines since September.

– Total Food sales grew 0.5% over the 3 months to May, ahead of their 0.5% decline over the last 12 months. Total Non-Food sales grew 2.8% over the same period, in line with its 12-month average growth, which for the first time since December, fell below the 3% mark.

– Online sales of Non-Food products in the UK grew 9.9% in May versus a year earlier, when they had grown 17.0%. The Non-Food online penetration rate was 17.4%, up from 16.2% in May 2014.

Helen Dickinson, Director General, British Retail Consortium, said: “May witnessed a slow-down in sales growth, below the three-month and twelve-month average. This was mainly due to fashion sales, which experienced a decline compared with the same month last year, where we saw record demand.

“Nevertheless, May also had some positive developments. Amongst all categories, furniture performed strongest, an indication of continuing consumer confidence. There was also good news on food: after six months of marginal growth year-on-year, we are now starting to see a stabilisation in food sales despite the highly competitive market environment.
¡§Interestingly, May sales also reflected the growing consumer interest in fitness and healthier lifestyles.”

David McCorquodale, Head of Retail, KPMG, said: “With Easter distortions behind us, May’s retail sales figures were disappointingly flat.

“The slight improvement in the three-month average food sales reflect the grocer’s relentless grind for growth and encouragement can be drawn from that. However, as highlighted by the decline on a like-for-like basis, this recovery continues in the eye of a price deflation storm which continues to benefit the consumer.

“Buoyed by a conclusive result in May’s General Election, the housing market picked up leading to stand out performances for furniture and homeware sales. As economists predict another housing boom for the second half of 2015, these trends could be set to continue.

“Elsewhere, footwear and fashion sales wilted against strong performances last year as consumers put off the summer wardrobe refresh as they waited for the unseasonably cool May weather to improve. Many retailers stretched out summer sales events and deepened discounts in order to try and entice consumers through the door.

“Looking ahead, June may be a tough month of comparables for some with the start of the 2014 World Cup in June last year boosting sales in certain areas. However, with consumer confidence nearing pre-crisis positivity, retailers will be hoping that the improving job market, low inflation rates along with a dollop of summer sunshine will provide a welcome boost.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC Director General Helen Dickinson: UK consumers are making greater use than ever of handheld devices to shop online, particularly where it comes to buying clothes

LONDON, 2015-4-27 — /EPR Retail News/ — Helen Dickinson, Director General, British Retail Consortium, said: “The latest BRC-Google figures show that UK consumers are making greater use than ever of handheld devices to shop online, particularly where it comes to buying clothes. The number of people using their smartphone to search for apparel is up by 54 per cent compared to year ago, while tablet searches over the same period are up by 11 per cent.

“British shoppers are also increasingly looking abroad as well as at home to buy their clothes, with a 9 per cent rise in consumers searching online for overseas clothes retailers. This trend also applies however to shoppers abroad with a 10 per cent rise compared to last year in the number of consumers in other countries searching online for UK apparel.”

Peter Fitzgerald, Retail Director, Google, said: “Mobile continues to drive growth in the UK and this remains the case with apparel in the first quarter of the year. Interestingly, emerging markets still see strong growth from tablets, however smartphones supercharge growth for overseas consumers of UK brands.

“Multichannel retailers had a strong Q1, growing at 42% YoY. This reflects the increasing trend we see in the UK toward click-and-collect services. Consumers value the convenience of in-store collection, and particularly for apparel, the ability to easily return goods to store.

“Finally, the New Year saw an increase in sports and fitness apparel searches as Brits turn over a new leaf and focus on their health. Looking at the top queries we can see that wedding season is under way with engagement rings and wedding dresses trending on mobile devices.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.

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BRC-KPMG March 2015: UK retail sales increased by 3.2% on a like-for-like basis from March 2014

– UK retail sales increased by 3.2% on a like-for-like basis from March 2014, when they had decreased 1.7% on the preceding year. On a total basis, sales were up 4.7%, against a 0.3% fall in March 2014. Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 6.8%. The figures are flattered by the inclusion of Easter in March this year against April last year.

– Total Food sales experienced their strongest growth since July 2013, helped by the Easter distortion. Growth was also strong in the home categories but subdued in the fashion ones.

– Online sales of non-food products in the UK grew 12.3% in March versus a year earlier, when it had grown 12.8%. The Non-Food online penetration rate was 17.6%, up from 16.9% in March 2014.

LONDON, 2015-4-15 — /EPR Retail News/ — Helen Dickinson, Director General, British Retail Consortium, said: “People hit the high street in March as the three month average showed that brick and mortar stores have contributed more to growth than online sales – the first time since August 2014. Looking at retail as a whole, there was a 4.7 per cent bump in sales, strengthened by the inclusion of Easter but underpinned by slow but steady growth.

“An increase in consumers venturing out to shop can be expected at this time of year and although this period is often difficult to measure due to Easter distortions, we saw a marked increase in sales across home categories including Furniture and Household Appliances, even though fashion sales were a bit subdued. As could be expected during Easter, shoppers had a greater appetite for food with a 1.8 per cent increase in sales over the last three months.

“All-in-all, retailers can also be satisfied with the consumer response to their Mother’s Day and Easter offerings, but it is important to note that April figures will be impacted by the absence of Easter this year.”

David McCorquodale, Head of Retail, KPMG, said: “An early Easter and better economic news helped lift retail sales out of the doldrums in March and the sector posted the strongest sales growth seen in nearly a year.
“While the figures are inflated by the timing of Easter, they are still a welcome boost for retailers who have battled flat or falling like for like sales for the last quarter. As anticipated furniture and home accessory retailers were the major beneficiaries of the bank holiday break, seeing sales soar as shoppers focussed on the home and garden.

Signs of recovery were also seen in the grocers’ figures, who are mounting a slow but steady fight back. However price deflation continues to dog the sector, and while supermarkets may be selling more, they are peddling hard to stand still. Demand is definitely pushing in the right direction, but there is a long way to go before like for like food sales are back in positive territory.

“Any retail recovery is built on confidence and uncertainty around the outcome of the election continues to cast a shadow over the long term recovery of the sector. If the result causes concern and confusion this could be the factor that stifles consumer spending.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.