Wednesday, 11 May 2016

Retail sales - particularly online, continue to rise...

UK retail sales in March continued to show year-on-year growth with the volume of sales estimated to have increased by 2.7% compared with March 2015, the 35th consecutive month of annual growth.

Figures for online sales underline the continuing changes in British shopping trends, with consumers turning away from purchasing on the high street in favour of more online shopping. The value of online sales was 8.9% higher than a year ago.



Clothing and footwear sales declined, however big ticket items continued to perform well with furniture being the main contributor to total sales growth. Average store prices, including petrol stations, were 3% lower in March compared with a year earlier, an indication that inflation will continue to remain low.

Sales over the Easter weekend were disappointing, due in part to the poor weather that deterred shoppers from buying summer clothes or spending money in garden centres. However, commentators believe that these purchases are simply deferred and expect to see figures bounce back when the weather improves.

The composition of the high street looks set for further change as two well-known high street names called in the administrators in April. BHS employs 11,000 and has 164 stores in the UK, Austin Reed employs 1,200 people and has 100 standalone stores and is represented in a further 50 locations. Commentators expressed the view that these brands had failed to keep pace with their competitors and the changing habits of UK shoppers.

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