The Jubilee celebrations and warm weather saw a strong start to trading period. Food and drink, clothing and footwear and online all performed particularly well during the week preceding the Jubilee.
The remainder of the month proved much more challenging throughout the sector. Discretionary and big-ticket items continued to struggle as consumers? underlying caution about the economy, jobs and their personal finances curtailed spending.
Online (including mail-order and phone) sales of non-food items showed stronger growth, up 12.1% against growth of 11.5% last year. Sales growth returned to levels more consistent with the 12-month average.
Stephen Robertson, Director General, British Retail Consortium (BRC), said: "It was the bunting boost. June was saved by the feelgood lift of the Jubilee, showing how crucial these temporary factors are in our difficult trading conditions.
"A trip to the shops played a big part in preparations for the occasion. The week leading up to the long weekend was a stand-out for the retail sector. Food and clothing and footwear retailers had the best of it as people bought in special food and drink and, encouraged by warmer weather, some treated themselves to shorts, dresses and sandals.
"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. Belts were tightened again and the lower temperatures cooled demand for summer fashions and outdoor leisure goods.
"With the first half of the year complete, we can see total sales growth between this January and June was no better than in 2011. It?s clear a permanent upturn in confidence and spending has yet to happen. Scrapping next month?s fuel duty rise will help hard-pressed customers and businesses. The Government needs to be equally supportive as it considers where next for other costs it controls."
Helen Dickinson, Head of Retail, KPMG, said: "In June, following a mini Jubilee boost, most sectors achieved positive like-for-like growth for the month as a whole. However, 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! The double whammy of uncertain sales levels and ongoing promotional activity continues to hit profits and cash flows.
"Retailers are fervently hoping that the summer of sport will raise cash for their coffers. But the reality is that any benefit from the Olympics will probably be concentrated in the South East and provide more of a boost for food than non-food. Overall there will be plenty of hype, a short term blip of benefit, and then back to normality and the challenges that brings."
British Retail Consortium (BRC)
Apparel/Garments | On 24th May 2018
The Washington, D.C.-based National Retail Federation and...
Textiles | On 24th May 2018
Reflecting continued growth in the global economy, world cotton mill...
Indo Count Retail Ventures
Today, there is no other emerging market as India, "we make in India and...
Global Organic Textile Standard
‘GOTS is a very efficient supply chain management tool, especially for...
Competition is the best thing that can happen to a startup
<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...
<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...
Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....
Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...
Bombay Textile Research Association
Bombay Textile Research Association (BTRA) is a leading name in textile...
Swerea IVF AB
Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...
From its modest beginning in the late 1960s, Shrujan has grown into a...
Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...
Usha Social Services
The Usha Silai label from Usha International is all set for a retail...