Downbeat week for retailers
Sales figures from BDO’s High Street Sales Trackerfor the week ending 4 October revealed total sales down by 2.1 per cent.
Overall, like-for-like sales decreased by 2.1%, with only the non-fashion sector in positive territory.
Non-fashion: +3.4%. Non-fashion remained positive, although down on last week, with demand in most categories solid but not spectacular. Luxury stores were again the stellar performers. In contrast health and beauty and gifting were more modest performers.
Fashion: -3.2%. Fashion reverted back to negative territory, with demand subdued in most categories. As in previous weeks, the absence of cold weather undermined stores selling autumn ranges, while
a lack of promotions also held back demand.
Homewares: -8.6%. Homewares suffered a substantial fall, with sales retreating in most categories. Cookware and textiles were the main exceptions. After a good recent run, this is a disappointing performance and indicates that underlying demand is still weak.
Non-Store: +42.7%. Although non-store sales remained comfortably up on last year, there were some signs of weakness in a number of categories reflecting the downward trend reported on the high street.
Don Williams, Head of Retail at BDO LLP commented: “It was a less than encouraging week for most mid-market retailers with sales across all three sectors deteriorating compared to last week. Overall, like-for-like sales decreased by 2.1%, with only the non-fashion sector in positive territory.
In other areas, many stores continued to struggle to attract shoppers, with the warmish weather, and surprisingly robust comparisons, cited as the main reasons for this poor performance. Although results should improve in the coming weeks, given the weak comparisons that lie in wait, there is a suspicion that trade could remain subdued.” he concludes.
Sales this week last year
The second week post-Lehman’s was reasonably upbeat. with demand holding-up in most areas. Non-fashion remained positive (+5.1%) while Fashion (-1.7%) and Homewares (-0.95%) only witnessed a modest drop in takings.
