- UK retail sales values were up 1.4% on a like-for-like basis from June 2012, when they had increased 1.4% on the preceding year. On a total basis, sales were up 2.9%, against a 3.5% increase in June 2012.
- Total sales growth of 2.9% is just ahead of the year-to-date average of 2.8% and better than the 12-month-average of 2.4%, confirming this year’s pick-up. In real terms, growth was 2.3% over the last six months against 1.5% over the last twelve.
- Clothing and Footwear were the best-performing categories, helped by a warmer June than last year.
- Online sales were up 14.1% compared with June 2012, when they had risen by 12.1%. This is the best performance since July 2012, excluding Christmas.
Helen Dickinson, Director General, British Retail Consortium, said: "Despite challenging economic conditions continuing, June saw another strong performance from the UK’s retailers, with very respectable overall growth across the categories. At this halfway point in the year we are able to see that sales are well ahead of the previous six month period, confirming that the retail recovery is continuing.
"One of the best performing areas was fashion. As the weather warmed up, we saw a good reaction to the excellent promotions that are available at the moment, accompanied by continuing demand for value and essential items. The weather also helped DIY and gardening products record a good month, and we saw some of the purchases that may have been postponed during the cold weather earlier in the year begin to take place.
"Electrical and electronics promotions helped those categories perform well, although unsurprisingly we are seeing weak TV sales compared with last year when many people were upgrading their sets in order to watch the London Olympics. Finally in food, growth continues to be broadly in line with inflation, which is a good result considering that this period last year saw Jubilee celebrations across the country with an accompanying high demand for suitable party food products. With spirits and temperatures lifted following the weekend and further feelgood news expected later in the month, retailers will be hoping that July builds on this encouraging trend."
David McCorquodale, Head of Retail, KPMG, said: "This is another respectable performance by UK retailers. Sales are moving in the right direction, albeit hard-earned and promotion driven. The statistics are all the more creditable as last year's sales included a Jubilee boost.
"Periods of sunshine helped to lift the gloom on the high street and retailers celebrated another month of rising sales. Sales of fashion and footwear particularly benefited from the change in seasons as shoppers refreshed their wardrobe and got ready to en oy the warmer weather. hese figures certainly underline the impact that weather can have on a retailer’s performance.
"Retailers will hope that the arrival of a royal baby will deliver a feel good lift to sales this month, as consumers stock up on champagne and commemorative items. While this temporary uplift won’t transform the fortunes of the UK retail sector, a mini memorabilia bonanza would still raise some much needed cash for retailers’ coffers, putting them on a stronger footing as they restock stores with autumnal ranges. "
Food & Drink sector performance – Joanne Denney-Finch, Chief Executive, IGD, said: "Given the run-up to the Queen’s Jubilee celebrations last year, food and drink sales at the start of June were always going to have challenging comparatives.
"But sales bounced back in the second week, remaining positive for the rest of the month. And taken as a whole, food and drink sales for June were broadly in line with inflation.
" here are more signs that shoppers are increasingly optimistic. Our ShopperVista research shows while four out of ten of them expect to be worse off over the next 12 months, this is down from 61 per cent in January 2011. his is the least pessimistic since we started tracking it three years ago."
The BRC-KPMG Retail Sales Monitor measures changes in the actual value (including VAT) of retail sales, excluding automotive fuel. The Monitor measures the value of spending and hence does not adjust for price or VAT changes. If prices are rising, sales volumes will increase by less than sales values. In times of price deflation, sales volumes will increase by more than sales values.
Retailers report the value of their sales for the current period and the equivalent period a year ago. These figures are reported both in total and on a ‘like-for-like’ basis.
Total sales growth is the percentage change in the value of all sales compared to the same period a year earlier. The total sales measure is used to assess market level trends in retail sales. It is a guide to the growth of the whole retail industry, or how much consumers in total are spending in retail – retail spending represents approximately one-third of consumer spending. It is this measure that is often used by economists. Many retailers include distance sales as a component of total sales.
'Like-for-like' sales growth (LFL) is the percentage change in the value of comparable sales compared to the same period a year earlier. It excludes any spending in stores that opened or closed in the intervening year, thus stripping out the effect on sales of changes in floorspace. Many retailers include distance sales as a component of like-for-like comparable sales.
The like-for-like measure is often used by retailers, the city and analysts to assess the performance of individual companies, retail sectors and the industry overall, without the distorting effect of changes in floorspace.
Online (including mail order and phone) sales of non-food are transactions which take place over the internet, or via mail order or phone. Online sales growth is the percentage change in the value of online sales compared to those in the same period a year earlier. It is a guide to the growth of sales made by this non-store channel. It should be noted that online sales are still a small proportion of total UK retail sales. Estimates based on ONS figures show about 9 per cent of total UK retail sales (food and non-food) are achieved via the non-store channel.
The responses provided by retailers within each sales category are weighted (based on ONS weightings) to reflect the contribution of each category to total retail sales, thus making it representative of UK retail sales as a whole. Because the figures compare sales this month with the comparable period last year, a seasonal adjustment is not made. However, changes in the timing of Bank Holidays and Easter can create distortions, which should be considered in the interpretation of the data.
As well as receiving sales value direct from the retailers in the scheme the BRC-KPMG Retail Sales Monitor also receives food and drink sales value data from the IGD's Market Track Scheme.
In its role as sponsor of the BRC-KPMG Retail Sales Monitor, KPMG is responsible for the aggregation of the retail sales data provided by the retailers on a weekly basis. his data consists of the relevant current week’s sales data and comparative sales figures for the same period in the prior year. The aggregation has been performed by KPMG on data for periods following 2 April 2000 and equivalent prior periods. The accuracy of the data is entirely the responsibility of the retailers providing it. The sponsorship role has been performed by KPMG since 10 April 2000 and the same for the aggregation of comparative sales figures for the period from 2 April 2000 it is not responsible for the aggregation of any data included in this Monitor relating to any period prior to 2 April 2000. The commentary from KPMG is intended to be of general interest to readers but is not advice or a recommendation and should not be relied upon without first taking professional advice. Anyone choosing to rely on it does so at his or her own risk. To the fullest extent permitted by law, KPMG will accept no responsibility or liability in connection with its sponsorship of the Monitor and its aggregation work to any party other than the BRC.
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The July 2013 Monitor, covering the four weeks 30 June – 27 July, will be released at 00.01am Tuesday 6 August 2013.
The data is collected and collated for the BRC by KPMG.
The British Retail Consortium (BRC) is the UK's leading retail trade association. It represents the full range of retailers, large and small, multiples and independents, food and non-food, online and store based.
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