'Bunting boost' lifts retailers, but June is a washout for sales
Tuesday 10 July 2012
A Diamond Jubilee "bunting boost" for the high street saved retailers' blushes last month, but the June deluge washed out sales for the rest of the month, the British Retail Consortium (BRC) has reported.
Shoppers temporarily put aside fears over the economy to pack in party foods like crisps, cake and dips ahead of the long weekend, leaving like-for-like retail sales up by 1.4 per cent on a year earlier. But the wettest June on record killed off sales for the rest of the month as retailers struggled to shift summer clothes.
Stephen Robertson, the BRC's director general, said: "It was the bunting boost. June was saved by the feelgood lift of the Jubilee, showing how crucial these temporary factors are in difficult trading conditions."
He added: "Sadly, the soggy celebrations over the Jubilee weekend itself, which heralded the start of the wettest June on record, were followed by far weaker business for the rest of the month."
Helen Dickinson, head of retail at KPMG, added: "Women's clothing continues to find the going tough because fashion spending is especially discretionary and we've all forgotten what the sun looks like."
Even the England football team's better-than-expected showing at the European Championships failed to offer a significant boost to sales as consumers remained reluctant to shell out on big-ticket goods. Overall retail sales during the past three months were down by 0.1 per cent on a year earlier.
Data from Visa Europe – based on debit, credit and prepaid card transactions accounting for a third of UK consumer spending – confirmed the sluggish trend. Spending fell at an accelerated rate in June, sliding 3.8 per cent year-on-year against a 1.8 per cent annual fall in May, its figures showed.
Visa Europe's commercial director, Steve Perry, said: "Blaming the rain for shoppers staying away from the high street will not wash, as online spending was down 5.5 per cent and telephone orders down 8 per cent. Although the Jubilee generated a modest boost in month-on-month consumer spending, the underlying trend remains dreary."
- 2 Smartphones are making children borderline autistic, says psychiatrist
- 3 Why this father didn’t hide his daughter’s heroin overdose in her obituary
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
Smartphones are making children borderline autistic, says psychiatrist
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Nepal earthquake: The race is on to help thousands trapped under rubble around Kathmandu, while remote villages face a long wait for help
Royal baby: Live updates as superbug closes ward at St Mary's Hospital where Duchess of Cambridge is due to give birth
Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...