Tag Archives: KPMG

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

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

BRC – KPMG RETAIL SALES MONITOR APRIL 2017

Covering the four weeks 2 – 29 April 2017

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

Helen Dickinson OBE, Chief Executive, British Retail Consortium

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

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

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

Paul Martin, UK Head of Retail, KPMG

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

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

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

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

Joanne Denney-Finch, Chief Executive, IGD

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

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

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

Source: BRC

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

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

BRC – KPMG RETAIL SALES MONITOR MARCH 2017

Covering the five weeks 26 February – 1 April 2017

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

HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM

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

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

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

PAUL MARTIN, UK HEAD OF RETAIL, KPMG

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

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

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

JOANNE DENNEY-FINCH, CHIEF EXECUTIVE, IGD

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

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

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

Source: BRC

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

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

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

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

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

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

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

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

Source: British Retail Consortium

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BRC – KPMG: UK online sales of Non-Food products grew 6.2% in August

London, 2016-Sep-06 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium. “Online echoed the performance of total sales this month, with growth slowing to just 6.2 per cent, well below the 12-month average of 11.1 per cent. People’s attention on screens turned to watching the Olympics rather than browsing, resulting in the lowest growth for online non-food sales since March 2013.

“Online as a proportion of total non-food retail sales remains above 20 per cent, contributing positively to total non-food sales growth, while store sales registered a decline. Today’s figures are a reflection of a month of lower sales growth across the board as people focused their energies on outdoor leisure activities rather than shopping.

“The fact that online continues to be the key driver of sales growth is both testament to and a driver of innovation in the industry. Despite continuing uncertainty and swings in consumer confidence since the referendum retailers continue to invest in optimising their digital platforms, which have already become an integral part of the customer journey.”

David McCorquodale, Head of Retail, KPMG
“While online sales were a more positive affair than the high street overall, e-channels experienced the slowest growth so far this year with non-food online sales up just 6.2% in the month.

“Health and beauty was the standout category as consumers stocked up on sun cream ready for exotic holidays abroad and Britain’s very own August scorcher. The warmer weather also encouraged parents to order outdoor toys online, helping to keep the kids out of mischief during the school summer break.

“In contrast, women’s footwear experienced negative growth in the month with shoppers reluctant to consider new Autumn collections in the summer heat. No doubt the category will improve as the weather cools in the coming months.

“With the summer holidays now coming to an end, ‘back to school’ marks the next opportunity for online retailers to grab the attention of shoppers.”

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

Source: British Retail Consortium

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UK retail sales decreased by 0.5% in June 2016 YoY – BRC / KPMG

London, 2016-Jul-14 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium. “Retail sales grew in June, albeit with total growth slowing to 0.2 per cent. While sales did slow towards the end of the month, it is too early to define this as a trend. The month outturn was predominantly driven by a decline in sales in the fashion categories and isn’t a surprise given that June 2015 saw record growth in clothing and footwear. Looking across the last three months, food has held its ground with a better performance than non-food sales, which has seen its lowest growth since April 2012, largely due to fashion combined with a slowdown in furniture.

“Britain’s retailers remain open for business. The EU referendum vote has not changed their relentless pursuit of delivering for customers day in, day out or their investment in meeting the needs of fundamental changes in the way people shop, driven by digital and technology. Despite the fall in the pound, the time it takes for any input price increases to translate into higher shop prices will depend on a combination of factors including further changes in the pound, commodity prices and the challenge for retailers to move pricing given the intensity of competition. So, there won’t be any instant shocks as any changes would take time to feed through.”

David McCorquodale, Head of Retail, KPMG
“Overall retail figures decelerated in June, with sales down 0.5% on a like-for-like basis. As consumer attention shifted indoors to escape autumnal downpours, furniture and home accessories bounced back in the month, with bigger ticket items proving relatively resilient in the days immediately following the EU referendum.

“With May sunshine a distant memory, however, summer wardrobes remained bare as sales of women’s fashion and footwear plummeted following one of the wettest and dullest starts to a UK summer since records began.

“Elsewhere, Euro 2016 kicked things into gear a bit for the grocers, with sales improving 0.8% in the three months April-June. However, the decline on a like-for-like basis suggests food and drink sales continue to be dragged down by the deflationary tide in the sector.

“While the ramifications from the Brexit vote may well affect consumer confidence, retailers will be hoping the long-promised heatwave and potential stay at home holidays will be enough to drive shoppers back to the high-streets over the months ahead.”

Food & Drink sector performance, Joanne Denney-Finch, Chief Executive, IGD
“The surprise result of the referendum appeared to trigger an immediate drop in food and drink spending, which more than offset some modest sales growth earlier in the month. Hopefully, this will prove to be a short-lived shock and calmer waters lie ahead.

“In data tracked throughout June, 56 per cent of shoppers predicted their personal financial situation would stay the same over the next 12 months, up from 29 per cent anticipating this during January 2011. We will be monitoring this figure closely.”

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 – KPMG: Online sales of Non-Food products in UK grew 9.0% YoY

LONDON, 2016-Jul-14 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium. “Online sales growth slowed to 9 per cent this month. While lower than last month’s growth it remains a solid performance, considering that June 2015 had recorded the best growth of that year. Online sales grew across all categories except Footwear and increased their share of total non- food sales as stores sales slipped further into negative territory.

“While online clearly remains the primary driver of sales growth for UK retailers, shoppers are no longer thinking in channels and are more and more often using both digital and physical stores as part of their customer journey from initial consideration to the actual transaction. Today’s figures re-emphasise the need for physical stores to be a destination for retail experiences rather than specifically and solely for the sales transaction itself.”

David McCorquodale, Head of Retail, KPMG
“Online sales slowed in June, up just 9 per cent versus a record month last year. The gloomy weather failed to persuade shoppers onto the virtual aisles which meant summer fashion sales resembled tumble-weed on a catwalk and footwear sales flip-flopped considerably. Rather than browse new summer collections, consumers instead preferred to accessorize with hats, scarves and bangles.

“Well timed advertising campaigns sparked sales of electricals as consumers’ sort out new TVs and the latest high-tech mobile phones to catch the Euro 2016 action at home and on-the-go.

“With the referendum fallout still uncertain, retailers will need to make sure all channels are ready and resilient to cope with the impact of a Brexit.”

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

Source: BRC

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SRC-KPMG: Scottish sales decreased by 3.8% in January 2016 vs the same month last year

  • In January 2016, total Scottish sales decreased by 3.8% compared with January 2015, when they had declined by 2.3%. This is the weakest Store performance since April 2012, but follows the best performance since January 2014 in the prior month. Like-for-like sales decreased by 4.0% on last January, when they had decreased by 3.1%. Adjusted for deflation measured by the BRC-Nielsen Shop Price Index (SPI), total Scottish sales decreased by 2.0%.
  • Total Food sales were 5.8% down on January 2015, when they had decreased 1.4%, their slowest year-on-year performance on record. Adjusted for the effect of online sales in Scotland, total Non-Food sales increased by 0.2% over a decline of 1.1% in January 2015, their worst performance since October 2015.
  • Three-month average total Non-Food sales growth was 0.9% (online adjusted) in Scotland, against a growth of 2.8% in the UK.

    • LONDON, 2016-Feb-17 — /EPR Retail News/ — David Lonsdale, Director of the Scottish Retail Consortium, said: “There is no denying that these are dour retail sales figures for January, showing a decline of two percent even once falling shop price inflation is taken into account. After the excess of the festive period, which saw solid retail sales growth in December, shoppers were clearly keeping a firm grip on purse strings and wallets in January even as footfall improved.

    “Food sales plunged last month, albeit after a strong showing the previous month, and at a faster rate than the 3-month average. The total year-on-year change of retail sales of non-food items dipped too. However, after taking account of the trend for online purchasing and discounting by retailers to shift stock, non-food sales remained positive. In fact, the 3-month trend for online adjusted non-food achieved its best performance since September 2015. Other non-food was the best performing category from an otherwise drab overall set of figures, with sales of larger furniture items holding up well. Clothing and footwear followed closely, with winter clothing, boots and sport shoes amongst the stand out performers during the month.

    “With the Chancellor’s Budget just a month away and the publication of the Holyrood election manifestos almost upon us, Scotland’s retailers will be looking for measures which will further improve consumer confidence, boost disposable incomes and keep down the cost of living. With half of VAT receipts being assigned to the Scottish Parliament our politicians at Holyrood have a direct stake in facilitating a flourishing retail industry.”

    David McCorquodale, Head of Retail at KPMG, said: “Storms battered the Scottish high streets in January, resulting in the weakest performance for some time and a washout to start 2016. With the month producing 145 per cent of average rainfall and only 63 per cent of average sunshine, it was one of the wettest and dullest Januarys for a century. As a consequence, total sales were down by 3.8 per cent compared with last year.

    “Food sales were particularly badly hit, falling by 5.8 per cent. Having enjoyed one of its best months for a couple of years in December, the grocers will be hoping figures for January were a consequence of the deluge rather than the post-Christmas diet. Even with the benefit of adjusting for the effect of online sales, the weather put the brakes on recent growth in non-food sales, which increased by only 0.2 per cent.

    “With an election looming and ongoing challenges in the oil and gas industry, the Scottish retail sector will be looking to the Government to find ways to encourage consumer confidence and to alleviate unnecessary burdens on retailers. They will also be hoping the latest sales decline was genuinely weather related rather than consumer malaise.”

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

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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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    SRC-KPMG: Scottish retail sales decreased by 0.2% in 2015 compared with December 2014

    • In December 2015, total Scottish sales decreased by 0.2% compared with December 2014, when they had declined by 1.8%. This is the best performance since January 2014, excluding Easter distortions. Like-for-like sales decreased by 0.4% on last December, when they had decreased by 2.6%. Adjusted for deflation measured by the BRC-Nielsen Shop Price Index (SPI), total Scottish sales increased by 1.8%. The total year-on-year sales performance peaked significantly in the week containing Christmas day, illustrative of the impact of demand during the festive period.
    • Total Food sales were 1.1% up on December 2014, when they had decreased 1.9%, their best performance since November 2013, excluding Easter distortions. Adjusted for the effect of online sales in Scotland, total Non-Food sales increased by 1.8% over a decline of 0.5% in December 2014, their second best performance of 2015.
    • Three-month average total Non-Food sales growth was 0.7% (online adjusted) in Scotland, the third highest this year, against a growth of 1.5% in the UK, representing a 2.0 percentage point widening of the gap seen in November.

    LONDON, UK, 2016-Jan-22 — /EPR Retail News/ — David Lonsdale, Director of the Scottish Retail Consortium, said:“This positive set of results for December provided a final flourish to what was otherwise a tepid 2015 as a whole for retail sales in Scotland. Once adjusted for falling shop prices total retail sales increased by a commendable 1.8 per cent last month, the best performance in almost two years. This was largely driven by purchases of festive food and drink in the run up to Christmas, although non-food categories continued to gather momentum most notably online.

    “Grocery sales recorded their best monthly performance in over two years, while non-food categories such as home accessories, electrical goods and beauty products also did better. Indeed ‘other non-food’ was the best performing category during the whole of 2015, driven in part by improvements in the housing market. By contrast clothing and footwear sales in December returned its weakest performance for four months.

    “Retail continues to be an industry in transition, with retailers navigating profound changes in shopping habits at the same time as falling shop prices and increasing government-imposed costs. It is far too early to say whether this uptick in December heralds the start of a more sustained recovery in the growth of total retail sales. It does however reinforce the need for the political parties vying to become the next devolved government to prioritise policies which support consumer confidence, including greater certainty over the future direction of travel on council tax reform and the new Scottish income tax, and which tackle the soaring cumulative burden of government-influenced costs which can too often weigh down retailers investment plans.”

    David McCorquodale, Head of Retail at KPMG, said: “A grocery-led festive season provided a year-end boost for Scotland’s rain-swept high streets to provide cheer and optimism for the year ahead. After months in the doldrums, the food and drink sector provided the surprise package over Christmas in Scotland, returning to growth as consumers loosened their belts and treated themselves to a festive feast.

    “Heavy rain and flooding meant shoppers took to the keyboard rather than the high street and unseasonably warm weather led to the fashion sector suffering a bit of a wash out, ending the year on a wave of discounts and online returns. Spending on home and electricals benefitted with the overhang from Black Friday and a welcome post-Christmas boost. However, the surprise winner in Scotland for the festive season was the beleaguered grocery market, which delivered both product and price to provide some encouragement for the year ahead.

    “With business rates and the implementation of the national living wage keeping a focus on the costs of running a retail business, it is imperative that the politicians in an election year allow consumers to feel confident and retailers to focus on product rather than red tape.”

    SOURCE: British Retail Consortium

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

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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-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-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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    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-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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    The John Lewis Partnership to hire KPMG as its auditors at the 2016 Annual General Meeting

    LONDON, 2015-6-4 — /EPR Retail News/ — In the Annual Report and Accounts for the year ended 31 January 2015, the Partnership noted that it had initiated an audit tender process for the 2016/17 financial year, in line with good governance practice.

    This tender process has now been completed and the Partnership intends to appoint KPMG as its auditors at the 2016 Annual General Meeting.

    The Chair of the Audit and Risk Committee, Baroness Hogg, said: ‘We thank PricewaterhouseCoopers for their strong contribution as the Partnership’s auditors over many years and for this coming year. We look forward to working with KPMG for the 2016/17 financial year’.

    Notes to editors

    The John Lewis Partnership – The John Lewis Partnership operates 43 John Lewis shops across the UK (31 department stores, 10 John Lewis at home and shops at St Pancras International and Heathrow Terminal 2), johnlewis.com, 338 Waitrose shops, waitrose.com and business to business contracts in the UK and abroad. The business has annual gross sales of over £10bn. It is the UK’s largest example of worker co-ownership where all 93,800 staff are Partners in the business.

    Enquiries

    For further information please contact:

    Citigate Dewe Rogerson
    Simon Rigby
    Jos Bieneman
    Telephone: 020 7638 9571

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    SRC/KPMG: total Scottish retail sales decreased by 2.3% in January 2015 compared with January 2014

    LONDON, 2015-2-18 — /EPR Retail News/ — In January 2015, total Scottish sales decreased by 2.3% compared with January 2014, when they had increased by 4.3%. Like-for-like sales decreased by 3.1% on last January, when they had increased by 2.5%. Adjusted for deflation measured by the BRC-Nielsen Shop Price Index, total Scottish sales decreased by 1.0%.

    Total Food sales were 1.4% down on January 2014, when they had increased 1.0%. This is the best Food performance since June 2014.Total Non-Food sales were 3.0% down on the previous year when they had increased 7.0%. Adjusted for the estimated effect of online sales in Scotland, total Non-Food sales decreased by 1.1%.

    Three-month average total Non-Food sales declined 0.2% (online adjusted) in Scotland against a 2.7% rise in the UK. The gap between Scotland and the UK three-month average total growth was -2.9 in January.

    David Lonsdale, Director of the Scottish Retail Consortium, said: “The total value of Scottish retail sales slipped back last month, however this needs to be seen in the context of a bumper performance in the corresponding period last year.

    “While sales of food edged down, it was nonetheless the best performing category – for the first time in four months – and recorded its best performance since last June. Non-food related sales eased back after a stellar performance in the same period in 2014, making for a pretty flat past quarter in the category once inflation is taken into account.

    “Looking forward, retailers will be heartened by the Bank of England’s predictions of continued low inflation being outstripped by average pay rises. The Chancellor should seek to bolster this in his Budget next month with policies which stimulate retailers to invest and which boost disposable incomes such as reducing income taxes on low earners.”

    David McCorquodale, Head of Retail at KPMG, said: “2015 got off to a difficult start for Scottish retailers ‎as sales shrank by more than two per cent against last year. Whilst the decline may be partly explained by more inclement weather this year and January being a strong month for sales last year, it is clear that the considerable saving felt by consumers in petrol and fuel bills is not finding its way to the High Street’s tills.

    “‎The grocery sector was the best performer in Scotland: while sales are still declining there is evidence that the rate of decline has reversed. It may be some time till we herald growth again in this competitive market, which is also buffeted by price deflation, but the grocers will take heart that the worst may be in the past.

    “With the gap widening ‎between the non-food sales decline when compared with the growth for the whole of the UK, Scottish retailers will be hoping for wage rate inflation to drive North before too long. With three more months of electoral campaigns ahead, retailers will wish to see some resolution to political uncertainty feed into consumer confidence.”

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

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    BRC-KPMG ONLINE RETAIL SALES MONITOR JANUARY 2015: Online sales of Non-Food products in the UK grew 11.7% in January vs a year earlier

    LONDON, 2015-2-10 — /EPR Retail News/ — Online sales of Non-Food products in the UK grew 11.7% in January versus a year earlier, when it had risen by 19.2% over the previous year. This month’s growth is close to the 12-month average of 12.0%. In January 2015, online sales represented 18.4% of total Non-Food sales, against 16.8% in January 2014.

    Toys & Baby Equipment was the second fastest growing category in January, reporting its best growth since it became an RSM category in June 2014. Footwear also experienced its best performance since December 2012.

    Online sales contributed 2.0 percentage points to the growth of Non-Food total sales in January. The 3-month average contribution of online to Non-Food growth exceeded that of stores for the fifth consecutive month.

    Helen Dickinson, Director General, British Retail Consortium, said: “Online sales for January tend to be strong with people enjoying surfing for online bargains after the busy frenzy of Christmas shopping. With the January penetration rate only second to November this shows just how popular online sales were.

    “As websites continue to improve with more stock being listed online it is not a surprise that we loved buying online this January. We were particularly enthusiastic about buying shoes online as over £1 in every £3 of footwear purchases was spent online, perhaps because we could see immediately whether our size was still available in the sales. Retailers who have invested in an omni-channel strategy will certainly take comfort in these figures.”

    David McCorquodale, Head of Retail, KPMG, said: “Online sales had a strong January, bolstered by seasonal sales campaigns and targeted marketing drives. This side of retailers’ business has a leading role to play in driving overall sales growth, with more shoppers than ever choosing the convenience of buying online.

    “In order to significantly move the dial substantial spend is needed to improve the robustness of retailers’ systems and improve the experience for customers. Retailers’ online operations warrant the lion’s share of their investment budgets this year.”

    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 JANUARY 2015: UK retail sales increased by 0.2% on a like-for-like basis from January 2014

    LONDON, 2015-2-10 — /EPR Retail News/ — UK retail sales increased by 0.2%, on a like-for-like basis from January 2014, when they had increased 3.9% on the preceding year. On a total basis, sales were up 1.6%, against a 5.4% rise in January 2014 and above the 12-month average of 1.4%.

    Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 2.9%.

    Total Food sales grew for the second consecutive month in January and showed a 0.2% rise over the last three months, its best performance since February 2014. The Non-Food performance was helped by the continuation of end-of-season sales into January.

    Online sales of non-food products in the UK grew 11.7% in January versus a year earlier, when it had grown 19.2%. The Non-Food online penetration rate was 18.4%, up from 16.8% in January 2014.

    Helen Dickinson, Director General, British Retail Consortium, said: “Retail sales have continued to grow with January reporting a respectable 1.6 per cent increase. Looking into the numbers a little more closely gives us even more cause for optimism – last year retailers had a bumper January so to see growth against such a tough comparison shows the industry to be in rude health. Customers were offered attractive bargains on winter ranges but it remains to be seen at what cost to the retailers’ margins.

    “Shoppers were in the mood to buy products aimed at helping them lead a healthier lifestyle – from fruit and veg to exercise equipment, all these kinds of products have been selling strongly. Given the time of year this is no surprise and retailers have capitalised by making sure they have the right stock, at the right price to help consumers achieve their New Year goals.”

    David McCorquodale, Head of Retail, KPMG, said: “After a subdued December, retailers experienced a semi-revival in fortunes as shoppers took advantage of the bargains on offer in the January sales. The clothing, toys and household appliances sectors particularly benefitted from this spending spree, notching up year-on-year growth against tough comparables from the year before.

    “These figures clearly demonstrate the difficult cycle that retailers are trapped in. Demand is now almost solely driven by discounts, with shoppers very reluctant to buy goods at full price in the hope that yet another sale could be just around the corner. This promotion-led environment risks becoming the new normal: retailers are struggling to persuade consumers to break the habit and go back to the traditional sales cycle.

    “The grocery sector saw its first growth in three-month average total sales since the first half of last year – an encouraging sign from the battlefield. With consumers benefitting from lower fuel and petrol prices, retailers are fighting for their share of these savings.”

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

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    John Lewis Partnership hosts the inaugural Inspire EO conference

    LONDON, 2015-2-5 — /EPR Retail News/ — John Lewis Partnership today hosts the inaugural Inspire EO conference, aimed at providing an insight into the benefits of giving private and public sector employees a stake in their business.

    Employee ownership has been shown to produce fast employment and sales growth; lead to higher productivity and profitability; and give businesses greater resilience through times of economic difficulty. With a series of tax advantages coming into force since October, there has never been a better time to consider employee ownership.

    Today’s conference, supported and sponsored by the Employee Ownership Association, KPMG,  Nationwide and CH2M HILL will be attended by approximately 350 delegates from new and existing businesses of all sizes, as well as public bodies.

    Speakers will include Sir Charlie Mayfield, Chairman of the John Lewis Partnership, Chief Executives of leading employee owned businesses, senior politicians, legal & financial advisors.

    Sir Charlie Mayfield, Chairman of John Lewis Partnership said:

    ‘Thanks to new measures introduced by this Government, there has never been a better time for companies to convert to employee ownership. With many more businesses making the change, I believe it is a model whose time has come and I’m delighted that so many businesses are attending the inaugural Inspire EO event.’

    Minister for the Cabinet Office Francis Maude said:

    ‘When the Coalition Government came to power our priority was to reduce the deficit so the country could pay its way in the world again. Central to this long-term economic plan was creating a diverse, responsible and sustainable economy for the future. Employee ownership can make a valuable contribution to this aim, because employee-owned firms have the kind of grit and resilience that our economy needs.

    ‘This was our rationale for encouraging public sector workers to form mutuals and take control of services. And it worked. Five years on there are now more than 100 mutuals, up from just nine in 2010. The results have been dramatic. Waste and average costs are down, while staff satisfaction is up. Many have also gone on to win further work, giving rise to growth and to new jobs.’

    Iain Hasdell, Chief Executive, Employee Ownership Association said:

    ‘Businesses owned by their employees are playing a magnificent role in the UK’s economic recovery. They consistently outperform their competitors as a direct result of being employee owned.  In 2014 productivity in employee owned businesses grew by 4.5% when it remained flat in the rest of the economy, and profitability in businesses owned by their employees rose by 25%. Employee owners across the UK are laying the foundation stones for a new economy.’

    Enquiries

    For further information please contact:

    John Lewis Partnership
    Neil Spring, Group Senior External Communications Manager
    Telephone: 020 7592 6292

    Citigate Dewe Rogerson
    Simon Rigby / Jos Bieneman
    Telephone: 020 7638 9571

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    BRC-KPMG Online Retail Sales December 2014: Sales of Non-Food products in the UK grew 7.0% in December versus a year earlier

    LONDON, 2015-1-14 — /EPR Retail News/ — Online sales of Non-Food products in the UK grew 7.0% in December versus a year earlier. In December 2013, online sales rose by 19.2% over the previous year. In December, online sales represented 17.0% of total Non-Food sales, against 16.0% in December 2013.

    Health & Beauty and Household Appliances were the fastest growing categories online in December. The month started strongly with Cyberweek and ended strongly in the sales week but sales were soft in between, reaching a low the week before Christmas.

    Online sales contributed 1.2 percentage points to the growth of Non-Food total sales in December. The 3-month average contribution of online to Non-Food growth exceeded that of stores for the fourth consecutive month.

    Helen Dickinson, Director General, British Retail Consortium, said: “Despite Black Friday having dragged some of our pre-Christmas internet spending into November, sales online remained strong with December showing a seven per cent increase on the same period last year. This is especially good considering December 2013 saw the second highest growth ever recorded by our monitor.

    “All product categories saw an increase in online purchases this month, showing that consumers’ burgeoning appetite to buy things on their computers, tablets and mobiles isn’t restricted to a single type of product. The numbers also show that all of the growth in non-food sales in December came from digital channels. However, in the same period we saw bricks-and-mortar stores holding their ground, which is a testament to how the UK’s retailers have finessed their multi-channel offer – with the huge expansion in Click and Collect underpinning this.

    “Although the busiest weeks for online shopping were predictably the week following Black Friday – ‘Cyberweek’ – and the Boxing Day sales, the popularity of click and collect meant shoppers continued to buy online throughout December. This data is sure to spur retailers on to continue to perfect their multi-channel offering in 2015.”

    David McCorquodale, Head of Retail, KPMG, said: “The parcel backlogs caused by the aftermath of Black Friday forced some retailers to renege on their delivery guarantees and this impacted shoppers’ confidence to buy gifts online in December. Having hit the internet hard in November, as Christmas neared closer some consumers chose to shop in store to make sure they had their gifts in their hand and not in the mail.

    “However, even against this challenging backdrop nearly one in five gifts were still bought online, and there is still growth to come from this channel. The main factor constraining online is the retailers themselves: their systems still show signs of strain at peak times and they need to be able to cope from order to delivery.”

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