RTTNews - Total retail sales in the UK rose at a faster pace in June, helped by a sunny weather, the British Retail Consortium said Tuesday.
Total retail sales grew 3.2% year-on-year in June, faster than a 0.8% rise in the preceding month. Same store-sales were up 1.4%, after falling 0.8% in May.
June's sunshine gave overall sales a much-needed boost, Stephen Robertson, Director General of the BRC said. The director said the heatwave helped food retailers, and also boosted sales of outdoor goods. However, sales of big-ticket items like furniture and homewares dropped. Given the uncertainty about jobs, consumers were still nervous about spending on expensive, non-essential items, Robertson noted.
Helen Dickinson, Head of Retail KPMG said, Although overall sales performance continues to be driven by food, many non-food retailers had a better month in June. However, for non-food as whole, like-for-like sales remain in negative territory with furniture and floorings along with house textiles showing the largest declines.
On the other hand, online and mail order sales of non-food goods bounced back in June to show the second highest growth rate in the year, Sharon Hardiman, Head of Non-Store Retailing with the BRC said. It's clear the heatwave didn't put people off staying at home to shop, Hardiman pointed out.
Meanwhile, Dickinson pointed out that the gap between the like-for-like sales and total sales was narrowing, due to fewer new stores openings. Two years of negative like-for-likes at store level for many retailers is putting severe pressure on cash and profits, the retail head of KPMG added.
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