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Sales drop but bring reason for optimism

Retail sales for June were down by 0.9 percent on a like-for-like basis, according to the most recent report from the BDO Stoy Hayward High Street Sales Tracker.

Although not good news for the sector, it is a better performance than many had predicted for this stage of the year, and shows an improvement over May. The main issue for last month, explains the report, was fluctuating sales in the sector from highs of 6 percent for the week ending 21 June to lows of -7.8 for the week ending 28 June.

Rupert Eastell, head of retail at BDO Stoy Hayward said: ‘Many had expected that by this point in the year retail sales would have down by about 5 or 6 percent, however, the first six months have been reasonably positive. The next six months will remain a real test for retailers – particularly as many believe that the sector has yet to reach the bottom of the downturn. General background noise about the strength of the recovery and rising unemployment means that consumers will continue to be wary of spending.’

Fashion sales fell slightly in June, by 1.1 percent, with the greatest spending on summer ranges and more cautious spending on more expensive discretionary purchases such as lingerie and footwear. Non-fashion was the only sub-sector with positive results for the month, with sales rising by 1.7 percent, while homeware sales continued to fall, dipping by 5.6 percent.

Sales in most sectors were promotion-led, with stores that began summer sales earlier generally performing better.





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