Skip navigation

Gloucestershire Business News

Ray of sunshine for high street sales

The fine summer weather helped boost June sales on the high street to the best for six years.

Retailers saw like-for-like trading grow by 1.3 per cent, according to BDO accountants' High Street Sales Tracker.

Fashion sales grew 1.4 per cent year-on-year as shoppers turned to update their wardrobes for the June heatwave.

Like-for-like sales of lifestyle goods increased by 1.2 per cent benefitting from strong tourist numbers and Father's Day. Homewares also saw a positive rise of 0.5 per cent.

But Sophie Michael, head of retail and wholesale at BDO warned the growth delivered in June should be considered in the context of a dismal June 2016 result for all categories.

"Retailers are often criticised for attributing poor results to unseasonal weather, but perhaps the positive impact delivered by June's sunshine demonstrates that weather influences the consumers' appetite for shopping.

"This time last year the EU Referendum outcome led to reluctance by consumers to spend, making it the high street's worst June in a decade. This June, consumers were distracted by a General Election, but that didn't stop them heading to the shops when the sun came out.

"Retailers will take heart from consumers' willingness to spend, but there is evidence shoppers are delving into their savings which is clearly not a sustainable position.

"With real earnings falling which will inevitably result in consumers to tighten their belts, product range and the retail experience will be ever more important factors together with discount offers to encourage spending."

Clothing store Primark have said that its group sales were up 15 per cent at constant currency in their third quarter and up 21 per cent at actual exchange rates.

Lifestyle sales performed well also as it benefitted from strong tourist numbers, Father's Day and the good weather.

The Confederation of British Industry (CBI) reported in June that as the inflation continues to rise against deteriorating wage growth, it will be important for retailers to maximise this summer's opportunities and walk the fine line of balancing discounting with margin squeeze.

Picture credit: Pixabay

Related Articles

SIGNED OFF: Sale and expansion at prominent Gloucester business hub Image

SIGNED OFF: Sale and expansion at prominent Gloucester business hub

Wulff Capital Holdings said it has gained an "excellent foothold" into the city's market

Historic Cotswold pub up for grabs Image

Historic Cotswold pub up for grabs

16th century Lechlade inn on the market.

Invest in Gloucestershire celebrates another win Image

Invest in Gloucestershire celebrates another win

A New Zealand-based business is set to open a new headquarters in Cheltenham.

CyNam awarded funding to improve collaboration  Image

CyNam awarded funding to improve collaboration

CyNam has been awarded funding for the prestigious Barclays Eagle Labs Ecosystem Partnership Programme.

Copyright 2024 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.