Retail sales boom in UK warm weather | WPN World People News

Surprise warm weather in March gave a boost to non-food retail sales particularly clothing, footwear and garden furniture, both on and offline, according to the latest data from the British Retail Consortium.

Online sales rose by 13.9% last month, putting in their strongest performance since December, according to BRC-KPMG Retail Sales Monitor for March 2012 released Wednesday. The category also includes mail order and telephone sales.

At the same time, UK retail shop sales rose by 3.6% in total, and 1.3% on a like-for-like basis, stripping out the effect of store openings and closures.

"The unusually warm weather in March brought some welcome sunshine into the lives of non-food retailers. The early signs of summer got people buying clothes and shoes for the new season. Gardening items and outdoor leisure also saw a lift," said Stephen Robertson, director general of the British Retail Consortium.

Online retail benefited in much the same way as store sales "That helped sales grow 13.9% compared with the same month a year ago, the best online performance since December," the official said.

Robertson however pointed out that considering sales during March 2011 were particularly weak, it has made sales during March this year's look stronger by comparison.

"Online retail continues to expand but the rate of growth is well behind the peaks of previous years," he said. "Sales are increasingly dependent on promotions and offers which are eating into margins." The BRC estimates, based on ONS figures, that 9% of UK retail sales take place online.

Considering that households are struggling to balance budgets with the expense of fuel and utilities, the report cautions that though the warmth of March was a help it is still too early to say whether this is additional spending or just shopping which has happened earlier than usual.

"Food sales growth continues to be largely underpinned by food inflation rather than by customers buying more," pointed out Robertson.

The overall retail environment is still difficult. Discounting remains a key tactic for retailers trying to encourage consumers to spend, particularly on big indoor items.

Helen Dickinson, head of retail at KPMG, said: "As consumers' incomes continue to be squeezed, it's female shoppers who are tightening their purse strings most severely, focusing more on lower price point items to control the household budget. This buying behaviour saw women's clothing perform less strongly than men's and children's wear. Home accessories and textiles also had a poor month."

And while food sales rose during the month, it was agreed that was driven by price inflation rather than increased volumes. "Increases in food prices rather than volumes was one of the factors behind the uplift in this month's figures," said Dickinson.

Jon Copestake, retail analyst at the Economist Intelligence Unit, feels "it is a little early to talk of recovery" considering the rollercoaster ride being witnessed in the British retail sector with Deloitte reporting 10,000 retail job losses and a 15% increase in administrations for Q1 2012.

The BRC report may be a cheering news but up ahead, retail counter Springboard has reported that rain prompted a 12.5% drop in year-on-year footfall for Easter which could make April's retail sales figures a little less sunny.

Source: Europe News.Net