The latest Office of National Statistics (ONS) Retail Sales Index figures have revealed that high street retail sales jumped to a two year high in August, with summer clothing, end of season offers, food and tech the biggest sales drivers.
Responding to the figures, which showed sales up 2.4% by value, and up 2.3% by volume, Kris Hamer, director of insight at the British Retail Consortium, commented: “Computing performed well as extensive summer discounting encouraged consumers to upgrade their tech, and students organised themselves for the new academic year. Food, cosmetics, and fashion sales also had a good month.”
However, he points out: “Clearly, the high cost of living still bears down on consumers, meaning demand may dip further when energy bills rise once again in October. On top of difficult trading, retail faces a disproportionate tax burden compared to other industries, holding back investment, and contributing to a decline in shops and jobs. The Government must take decisive action in the upcoming Budget and introduce a 20% Retail Rates Corrector – a 20% adjustment to bills for all retail properties – to level the playing field. This would drive economic growth and restore high streets up and down the country.”
Greg Zakowicz, senior e-commerce expert at e-commerce marketing platformOmnisend, adds that the retail industry should not rest on its laurels over the next few months. “The festive period brings with it the biggest shopping events of the year and it is critical that retailers get their communications nailed down ahead of the kick-off on Black Friday.
“Cuts made to winter fuel allowance, as well as increased energy prices, could make some pensioners less likely to spend money so efforts to keep items competitively priced will be rewarded by consumers. However, the good news for independent businesses going up against e-commerce giants like Amazon is that consumers are wise to the marketing around sales events, and whether or not they are getting a genuinely good deal.”
Top: Retail sales bounced back in August.
