2 minute read
Retail Sales
by 55 North
Cost-of-living crisis weighs on retail sales growth
Accountancy and business advisory firm BDO says its latest High Street Sales Tracker confirms that the outlook for retailers “is of concern”.
High levels of inflation and the deepening cost-of-living crisis have prompted further slowing of retail sales growth, new figures by accountancy and business advisory firm BDO LLP reveal.
BDO’s High Street Sales Tracker reveals total like-for-like sales, combined in-store and online, increased by +8.4% year-on-year in June. Total online like-for-like sales remained relatively flat at just +1.6% in June. While this is the online retail sector’s third consecutive positive result, it is a disappointing performance given it is based on low growth of +8.2% in June 2021.
The figures show June started particularly slowly, as total like-for-like sales grew by just +4.65% in the first week of the month, which included the Platinum Jubilee bank holiday. Total like-for-like sales increased by +7.63% in the second week of June, and +7.30% in the third week, compared to the same week in 2021.
The final week of the month saw the strongest like-for-like growth, with sales jumping by +18.61% above those recorded in 2021.
Sophie Michael, Head of Retail and Wholesale at BDO LLP, said: “These results confirm that the outlook for retailers is of concern. With consumer confidence at historically low levels, real wages falling to a 20-year low and interest rates set to rise further, there are few signs of encouragement for retailers.”
She added: “Ultimately, retailers will be looking to the government to use the levers at its disposal to get inflation under control, ease the cost-of-living crisis and create the economic conditions where the retail sector can flourish.”
