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Sep 6, 2019
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Consumers choose sunshine over shopping in August, but e-sales soar

Published
Sep 6, 2019

Sunny weather and continued Brexit chaos worked against retailers once again during August with the latest BDO High Street Sales Tracker (HSST) on Friday showing like-for-like in-store sales down 0.1% last month from a weak base of -2.7% in August 2018.


Clear skies kept consumers focused on anything but shopping last month



In fact, the last week of the month, when temperatures soared and consumers had a must-take-advantage-of-the-weather attitude, resulted in a “calamitous fall for in-store sales.”

The result marks six months of negative like-for-like in-store sales this year.

It all got the autumn season (and particularly the Christmas shopping season) off to a slow start and despite back-to-school promotions, fashion in-store sales rose only 0.9% on a like-for-like basis in August from a weak base of -3.6% for the same month last year.

Following an eight-month run of positive in-store sales, homewares failed to continue its pattern of encouraging results. In-store like-for-like sales fell by 0.8% from a very poor base of -6.1% for August 2018.

But the hot end to the summer didn't stop consumers from shopping online last month with a surge in e-shopping. August non-store sales rose by 18.6% from a base of +13.7% for the month last year. The category continued to be a source of growth for the sector as retailers failed to convert improved footfall into in-store sales. That suggests consumers really are shopping with a multichannel mindset, perhaps trying things on in-store before ordering them online.

Sophie Michael, Head of Retail and Wholesale at BDO LLP, said: “2019 continues to deliver bad news for the British high street, with crumbling consumer confidence and growing uncertainty discouraging discretionary spend.

“Despite some improvement in footfall in the final week of August, retailers were unable to convert this into higher sales. With another worrying month of no growth and a government distracted by Brexit negotiations and now a potential general election, retailers are heading into the crucial Christmas period on very unsteady footing.”

She added: “As the retail landscape changes, the pressure on traditional retailers to adapt is bigger than ever. However, recent research suggests retailers are failing to invest in their digital strategy and omnichannel offering despite the huge shift online.”

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