United Kingdom

Details

  • Industry: Retail and Consumer Goods
  • Type: Press release
  • Date: 20/06/2013

UK retail sales rise, but against a backdrop of deep discounting 

  • online offsets a weaker performance on the high street

 

  • supermarkets wage relentless discounting campaign in order to protect market share

 

 

David McCorquodale, UK Head of Retail at KPMG, comments on the latest Retail Sales figures from the Office for National Statistics:

 

“This is a solid performance by UK retailers and this increase in consumer spending gives us hope that the UK economy might be finally turning the corner.

 

“However, promotions were used to drive these sales, especially in the food sector, and this decision to discount will have eaten into retailers’ margins.

 

“It has been a battlefield in the supermarkets with blanket discounting campaigns and price match schemes used to persuade customers to shop in their stores.  When one grocer pushes the discount button, the others are forced to follow suit in order to protect their market share.

 

“This relentless campaign on price must be damaging their margins and shows no sign of abating, because customers remain highly sensitive about food prices, which eat into such a high proportion of their household budget.  So yes, food sales are up, but the real question remains at what price to the retailers.

 

“Elsewhere online sales proved a saving grace and offset weaker sales on the high street.  Online and digital have proved to be an essential weapon in a retailer’s arsenal, and will continue to grow in importance as consumers increasingly use more and more technology in their day to day lives.”

 

 

-Ends-

 

 

Notes to editors:

 

For press enquiries please contact

 

Zoe Sheppard, PR Manager at KPMG: +44 (0)117 905 4337 

zoe.sheppard@kpmg.co.uk             

 

About KPMG

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

 

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