- But the grocers’ price wars are cause for concern
David McCorquodale, UK Head of Retail at KPMG, comments on the latest Retail Sales figures from the Office for National Statistics (ONS):
“The ONS statistics show that the effects of the economic recovery are feeding through to the retail sector. Retailers delivered a solid sales performance in April, undoubtedly helped by Easter and the good weather.
“This is very much a sentiment led recovery for the retail sector. While wage growth is lending a helping hand, ultimately consumers need to feel confident enough to spend their hard earned cash, especially when it comes to non essential big ticket items. If the good news keeps on coming and the economic recovery remains on track, this will be a good year for the retail sector.
“Areas of concern do remain, however. Some of the bigger grocers are propping up sales volumes with heavy promotional campaigns. This strategy is prompting some unease within the investor community, who are waiting to see how these price cuts will impact the grocers’ bottom line. However, whilst they may not be welcomed by investors, these price wars are good news for average consumers, who are being heavily courted with discounts and offers for their custom.”
Notes to editors:
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