New figures show June retail sales not only rebounded but also started to make up for some of the losses of last year.
According to BDO’s High Street Sales Tracker (HSST), total like-for-like (LFL) sales, combined in-store and online, increased by 52.1% in June, though from a base of -14.4% for the equivalent month last year.
The final two weeks of June demonstrated the strength of this year’s re-opening compared to last year. Sales jumped 41.74% in the third week from a poor base (-7.07%) for the same week last year when non-essential retailers began to re-open after the first lockdown. The final week of June saw total LFLs improve by 37.80% from a base of -15.54% for the same week in 2020.
Online spending, most notably amongst fashion retailers, also bolstered overall growth. Total non-store like-for-like sales rose steadily by 8.2% in June despite the substantial base (+102.6%) set during June 2020.
All three sectors recorded positive total like-for-like sales in June, particularly fashion and homeware, as both sectors continued their rosy recovery.
Fashion total like-for-like sales jumped 73.7% this month, though from a base of -20.9% for June last year, bolstered in part by steady spending online. June marks the fourth consecutive month of positive total LFLs for fashion.
Homeware sales also recorded a strong June, as shoppers kitted out their homes ahead of the Euros. Total like-for-like sales rose 22.0% in June from a base of +25.5% for the same month last year. This month’s result marks the fourteenth consecutive month of positive LFL sales for total homeware, as the sector enjoys sustained growth, underpinned by online sales.
Lifestyle total like-for-like sales increased by +0.9% in June but from a base of -23.9% for the equivalent month last year. The result marks the fourth straight month of positive total LFLs for lifestyle due to consistently positive results throughout June despite diminished online sales.
“These June figures continue to build on April and May’s results, with growing consumer confidence sustaining a rosy summer recovery,” said Sophie Michael, Head of Retail and Wholesale at BDO LLP.
“Much progress is being made in this reopening phase, with week three and four’s results demonstrating the strength of the recovery and suggesting an uplift in sales even when compared to a more ‘normal’ year.
“With higher footfall, more in-store spending and online sales still increasing above pre-pandemic levels, there are many reasons to be optimistic.
“However, the retail sector may soon face a major logistics challenge, with supply pressures restricting the availability of stock to meet this pent-up demand.
“With the threat of inflation also looming on the horizon, it remains to be seen if the summer boom can be sustained into the Autumn.”
NAM Implications:
- As always, key is how your sales compared vs these stats.
- By trade sector and category.
- Just-in-case…
