Retail sales in June grew by 3.2% compared to the same month in 2023.
- This marks the strongest sales growth since August 2023, with a second successive positive month.
- Online sales showed a significant increase of 9.8%, overshadowing weaker in-store sales growth.
- The fashion sector struggled compared to lifestyle and homeware, with a decline in-store.
- Government initiatives to revitalise high streets are eagerly awaited by retailers.
Retail sales in June experienced a 3.2% growth compared to the same period in 2023, according to BDO’s High Street Sales Tracker. This marks the strongest performance since August of the previous year, indicating a shift towards a more positive trend in the retail market.
The increase in sales was driven primarily by online transactions, which rose by 9.8%. In contrast, in-store sales showed modest growth at 1.8%. The disparity highlights the growing influence of online shopping on the retail sector.
The fashion industry lagged behind other sectors such as lifestyle and homeware. In-store fashion sales fell by 6.7%, although online fashion sales increased by 9.9%. Overall, fashion retail achieved a marginal growth of 0.9%. Lifestyle and homeware, however, recorded increases of 7.5% and 3%, respectively. This underperformance relative to other categories presents a significant challenge for the fashion sector.
Sophie Michael, BDO’s head of retail and wholesale, expressed concerns over persistent negative sales on the high street, particularly as fashion retailers have faced ten consecutive months of negative results. She cited recent weather conditions as insufficient to boost footfall and sales.
The new government has proposed a five-point plan aimed at revitalising high streets, intending to bring consumers back to town and city centres. This initiative is anticipated eagerly by the retail sector, which seeks a solution to its ongoing difficulties.
The retail sector’s reliance on online sales continues to grow, necessitating adaptive strategies from traditional retail outlets.
