Retail sales plummet as soaring temperatures make it ‘too hot to shop’
PUBLISHED: 08:46 06 July 2018 | UPDATED: 15:32 06 July 2018
Archant Norfolk 2018
Weather “too hot to shop” in led to disappointing retail sales figures in June.
A 5.4% year-on-year drop in sales in the final week of the month as temperatures nudged 30 degrees capped a “crippling” half year for the high street.
The BDO high street sales tracker showed sales were down 1.7% in June compared with a year earlier – marking the first time in more than a decade that in-store growth failed to exceed 1% in a single month for the first half of a calendar year.
READ MORE: Retail review says bricks-and-mortar stores can no longer anchor high streets
READ MORE: Tens of thousands of jobs ‘at risk or lost’ in retail sector
June sales of lifestyle goods were down 0.3%, fashion fell 2.3% and homewares were down 2.4%, while non-store sales grew by just 10.4% – the lowest year-on-year increase since December 2015 – as retailers struggled to cope with declining consumer confidence.
Sophie Michael, head of retail and wholesale at BDO, said: “The bleak and crippling start to the year shows no sign of abating, with deep discounting set to eat into margins that are already being stretched paper-thin by poor sales and rising costs, including the much-discussed issue of unfair business rates on high street retailers.
“These numbers confirm what many retailers have already suspected - this has been the worst first half of a calendar year for more than a decade.”
She added: “People have simply reined in their spending, online and in store, and extreme weather of snow in March and heatwaves in June has only exacerbated this trend.
“It will take a monumental change in fortunes on the high street to turn 2018 into anything other than an annus horribilis.”
If you value what this gives you, please consider supporting our work. Click the link in the yellow box below for details.