August 2022
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Don Williams, Retail Partner at KPMG, said:
“The warm weather combined with rising prices, saw August sales growth rise by 1% year on year, although volumes will have been challenged.
The heatwave saw strong growth for health items such as suntan lotion, whilst food and drink sales for summer barbeques grew by 5% year on year and home accessories also saw growth for the first time in months. Online sales dipped by over 6% in August, however the locked in step up of on line penetration remains.
Worryingly, August data revealed a significant fall in clothing sales – the category which has been the most robust performer this year which could signal the start of shoppers pulling back from non-essential spending.
As consumers return from summer holidays to an 80% increase in the energy price cap, double digit inflation and Christmas just 3 pay cheques away, the brakes could be firmly applied on non-essential spending for most UK households. The storm clouds are closing in as retailers brace themselves for a fall in demand – at a time when their own margins are under pressure from rising costs. Supporting customers through these difficult times will be paramount for the health of the sector as we move through the rest of this year. Doing this will require a more granular understanding of current and prospective customers combined with a focused reappraisal of both the underlying cost base and areas that require investment to drive productivity gains especially with technology. It is in these areas that opportunity lies even in a challenging trading environment.”
Working with the retail sector to navigate the structural changes required to succeed in a post-COVID environment.
Delivering growth in a post-COVID retail environment.
The sun came out for retailers in July, as like-for-like sales grew 1.6% on last year
The sun came out for retailers in July, as like-for-like sales grew 1.6% on last year
Sales continued to slide for the third month in a row
Sales continued to slide for the third month in a row
Sales continued to slide for the third month in a row
The rising cost of living is going to remain the main story for retailers
The rising cost of living is going to remain the main story for retailers
The rising cost of living is going to remain the main story for retailers
Retailers are bracing for a fall in consumer spending
Retailers are bracing for a fall in consumer spending
Retailers are bracing for a fall in consumer spending
Retail sales growth continues – but clouds are on the horizon
Retail sales growth continues – but clouds are on the horizon
Retail sales growth continues – but clouds are on the horizon
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