The latest figures on like-for-like sales from the British Retail Consortium have just been released, shining some light on the performance of the British retail sector in September, based on actual sales from participating companies.
The latest report shows that the retail sector saw a -0.2% fall in actual sales in September, a five-month low following a summer spike influenced by World Cup fever and plenty of sunshine, although this rate of growth has been in decline since then.
The number of total sales did see a slight uplift in September (0.7%), but the BRC reported this was also the lowest rate of growth since October 2017.
The figures suggest the bricks and mortar retail sector is currently struggling to keep its head above water, at least until the seasonal boost of Christmas starts to filter through.
However, a squeeze on household spending - along with increasing competition from online retailers driving prices down - will see these traditional outlets continue to swim against the tide of consumer preference.
While Christmas always brings a heightened level of consumer spend, those struggling with the increasing cost of living along with an almost static wage growth will inevitably turn to the online space for the best deal.
So not only do our high-street retailers need to ensure they are fighting on both fronts, but they must consider how to increase the appeal of an in-store purchase to lure shoppers away from their keyboards and onto the streets.
With political clouds on the horizon, the retail landscape could become more turbulent over the coming months and so our high-street stores need to also consider a strategy above and beyond surviving up to Christmas.
Our founder and CEO, Andy Soloman, has commented on the latest findings.
“The performance of the retail sector has been slowly subsiding since June as consumers move away from the season of summer spending and reign in the purse strings in anticipation of the festive season.
A Christmas spike in retail activity will be warmly welcomed by the sector, but until then there are still some tough months ahead for both consumers and retailers alike as demonstrated by the weakest sales performance in five months. Stretched household income continues to put a strain on consumer sentiment while retailers struggle to balance the inflated cost of goods with competitive prices.
A no-deal Brexit may cause problems further down the line due to complications with the import and export of goods, but in the short-term, we should see a more muted level of spending as uncertainty continues to deter consumers from any unnecessary financial outgoings.”
