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UK high street struggles in summer

The UK’s high streets are having a difficult summer, according to the results of two independent surveys.

The CBI’s latest Distributive Trades Survey showed that retail sales fell for the third month running, and August is predicted to see a further drop.

At the same time, an analysis of 100 high street retailers by PricewaterhouseCoopers LLP (PwC) shows that 90% are currently holding sales – a similar amount to that seen at the end of last year.

Andy Clarke, Chairman of the CBI Distributive Trades Panel, and Chief Operating Officer of Asda, said: “Many retailers are having a difficult summer and no pick-up is expected in August. But the overall sales falls are not as heavy as we saw at the start of the year, and some retail sectors are reporting growth. The recent sharp rise in unemployment will worry many consumers, and is likely to constrain sales growth in the months ahead.”

The PwC study found that average discounts being offered are currently over 60%.

Anna Bielby, director of the Northern retail practice at PricewaterhouseCoopers LLP, said: “Sales and special offers are an increasingly common sight on the high streets in the North East. Discount levels (at up to 70%) are higher than we have seen previously and distinct sales periods are now being replaced by almost continual promotional activity in the middle market.

“The top end retailers are telling us that sales periods are much more disciplined this summer due to starting prices being set at the correct level.

“Whilst this represents good news for the North East consumer, in the mass market retailers are facing significant margin pressure in an attempt to protect market share and maintain sales volumes.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .