Member Article

Retail recovers at fastest rate this year

The retail sector improved at its fastest rate this year, although a 3.5% rise in sales last month was buoyed by a particularly weak September in 2011. Extreme weather conditions caused a surge in winter clothing sales and boosted fashion by 3% year-on-year. Non-fashion grew by 7%, which business advisors, BDO LLP, put down to strong sales in gifts, leisure, beauty and luxury sales.

Sales elsewhere suffered from what has been labelled as the “Olympic Lull” during August, but the recovery in September was significant with 32.5% growth in online and mobile sales. Conversely, homeware divisions saw a 5.3% drop in sales, as the housing market continues to struggle.

National Head of Retail and Wholesale at BDO LLP, Don Williams, commented: “These figures are being compared against a relatively weak 2011, but the predicted Olympic afterglow seems to have helped boost sales everywhere apart from homewares. The autumnal weather has certainly provided a welcome fillip for fashion sales too. Next month’s figures will give us a better idea of how strong the recovery is, but we expect growth to remain positive in the run up to Christmas.”

Adam Stewart, marketing director of Ratuken-owned Play.com, commented: “It’s great to see some good news for UK retailers both online and on the high street after a challenging summer where consumers’ attention was diverted from the shops towards a summer of sports, including London 2012. As we enter a fresh season shoppers are clearly looking to make up for lost time, stocking up on warm clothes and entertainment for the cold autumn evenings. There’s no doubt that the recent burst of cold weather has encouraged more people to buy online from the comfort of their homes or to head to the warmth of high street shops, and it’s imperative that retailers make the most of this Golden Quarter in the run up to Christmas to ensure an overall successful year of sales.”

This was posted in Bdaily's Members' News section by Miranda Dobson .