Fashion contributes to growth in high street sales
Like-for-like sales in UK high streets grew by 2.6% in July thanks to a strong showing from the fashion sector according to new research.
The High Street Tracker compiled by BDO found that fashion retailers reported year-on-year growth of 3.7% as the cooler weather in July encouraging shoppers to purchase autumn clothing early. Retailers also benefitted from a range of promotional activity.
Good fashion sales also helped boost online sales, with non-store sales up 39.9%.
Don Williams, national head of retail and wholesale at BDO LLP said the figures show consumers will continue to spend with retailers who can offer exciting products and promotions supported by consumer-orientated service.
“The retailers doing this can have the confidence to continue investing in their multi-channel offering and on quality retail sites in the best locations,” said Williams.
Fashion might have enjoyed a good month, but year-on-year homeware sales dropped by 2.1% as consumers continue to delay the purchase of big ticket items.
Williams added that while the current sales growth is a positive sign for the high street, retailers will continue to be cautious with good reason.
“Many of these sales have been boosted through discounting,” he explained. “What long-term effect this has on margins is a story yet to be told.”
