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Worst June Retail Sales on record according to the BRC

The latest retail sales data from the BRC reveals that, for the five weeks 26 May – 29 June 2019, June sales struggled against strong comparables.

  • On a total basis, sales decreased by 1.3% in June, against an increase of 2.3% in June 2018. This decline drags the 3-month average into a decline of 0.1% and the 12-month average to an increase of 0.6%, the lowest since our records began in December 1995.
  • In June, UK retail sales decreased by 1.6% on a like-for-like basis from June 2018, when they had increased 1.1% from the preceding year. This is lower than the 3-month and 12-month averages of -0.4% and -0.1% respectively. This represents the worst 12-month average since April 2012.
  • Over the three months to June, In-store sales of Non-Food items declined 4.3% on a Total basis and 4.1% on a like-for-like basis. This is worse than the 12-month Total average decline of 2.8%.
  • Over the three months to June, Food sales increased 1.5% on a like-for-like basis and 2.4% on a Total basis. This is above the 12-month Total average growth of 2.2%.
  • Over the three-months to June, Non-Food retail sales in the UK decreased by 2.0% on a like-for-like basis and 2.1% on a Total basis. This is below the 12-month Total average decrease of 0.8%. This is the worst quarterly decline since February 2009.
  • Online sales of Non-Food products grew 4.0% in June, against a growth of 8.5% in June 2018. The 3-month and 12-month average growths were 3.3% and 5.0% respectively.
  • Non-Food Online penetration rate increased from 28.5% in June 2018 to 30.7% last month.

Helen Dickinson OBE, Chief Executive | British Retail Consortium

“June sales could not compete with last year’s scorching weather and World Cup, leading to the worst June on record. Sales of TVs, garden furniture and BBQs were all down, with fewer impulse purchases being made. Overall, the picture is bleak: rising real wages have failed to translate into higher spending as ongoing Brexit uncertainty led consumers to put off non-essential purchases.

“Businesses and the public desperately need clarity on Britain’s future relationship with the EU. The continued risk of a No Deal Brexit is harming consumer confidence and forcing retailers to spend hundreds of millions of pounds putting in place mitigations – this represents time and resources that would be better spent improving customer experience and prices. It is vital that the next Prime Minister can find a solution that avoids a No Deal Brexit on 31st October, just before the busy Black Friday and Christmas periods.”

Paul Martin, Partner, UK Head of Retail | KPMG

“There are few places retailers can hide from the difficult trading conditions that have been hitting the industry for some time. June’s retail performance did little to ease that, with like-for-like sales falling 1.6 per cent compared to last year.

“On the high street, consumers were eager to pull up a pew for the summer’s sporting events, with added interest in the furniture category. Otherwise, consumers largely turned a blind eye to offers in the physical retail space.

“With 4 per cent online growth, shoppers were thankfully more engaged in this channel, making the most of the added convenience and continued aggressive pricing. Fashion performed particularly well thanks to end-of-season sales and upcoming holidays.

“Pressure on retailers continues to mount and is seemingly coming from all angles: economic, geo-political, environmental and behavioural. Consumer spend is only likely to fall further as things stand, and cost efficiency remains vital. The focus for most in the industry will be preservation and adaptation in order to see them through these tough times.”

Susan Barratt, CEO | Food & Drink sector performance | IGD

“A late start to the summer weather in June compared unfavourably with consistently drier and warmer conditions in 2018, so while year-on-year growth in food and grocery sales last month was small, it is still encouraging.

“If the recent pick up in temperatures is sustained, there’s hope for stronger figures in July. Shoppers feel slightly more positive at the moment, with the percentage expecting to become worse off financially in the year ahead falling from 32 per cent in February to 27 per cent today.”

Source : Insight DIY Team

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