Soaring temperatures fail to heat up July high street sales
Soaring temperatures failed to lift high street sales last month but benefited online stores as consumers turned to fast fashion for their heat wave wardrobes.
In-store like-for-like sales only increased 0.1 per cent in July as shoppers sheltered from the heat, upping the pressure on retailers as the third quarter continues.
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BDO head of retail and wholesale Sophie Michael said: “2019 is proving to be a year to forget for the great British high street.
“Discounting has been relentless this summer; July’s flat sales figures will not only be disappointing for retailers but will also add further pressure to margins that are already being squeezed to the extreme.”
However, online sales received a 20.5 per cent boost from a base of 14.7 per cent growth last year – the strongest performance for the category since December 2017- according to the latest High Street Sales Tracker from accountancy firm BDO.
It comes as fast fashion platform Boohoo snapped up the online businesses of Karen Millen and Coast earlier this week as the e-commerce retailer seeks to build upon its successes and expand into higher price point sales.
Lifestyle sales at bricks and mortar stores reported the worst July on record as like-for-like sales fell 3 per cent from a base of -2.6 per cent last year.
The in-store fashion sector reported the first signs of growth in three months as sales increased three per cent.
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BDO called on Boris Johnson to take action to improve conditions for high street retailers.
Michael added: “It is crucial that the new prime minister delivers on his pledge to implement measures that will help save the high street and provide some much-needed reassurance to retailers and the hundreds of thousands of people they employ.”