Cost of living crisis starts to impact sales, BRC finds

On a total basis, sales decreased by 1.0% in June, against an increase of 10.4% in June 2021, according to the latest figures from BRC’s sales monitor.

This is below the three-month average decline of 0.8% and the 12-month average growth of 3.0%.

UK retail sales decreased 1.3% on a like-for-like basis from June 2021, when they had increased 6.7%. This was above the three-month average decline of 1.5% and below the 12-month average growth of 1.0%.

Over the three months to June, food sales increased 2.2% on a total basis and 1.6% on a Like-for-like basis. This is above the 12-month total average growth of 0.6%. For the month of June, Food was in growth year-on-year.

Over the three-months to June, non-Food retail sales decreased by 3.3% on a total basis and 4.2% on a like-for-like basis. This is below the 12-month total average growth of 5.0%. For the month of June, non-Food was in decline year-on-year.

Over the three months to June, in-store sales of non-food items increased 2.2% on a total basis and 0.6% on a like-for-like basis since June 2021. This is below the 12-month growth of 35.5%.

Online non-food sales decreased by 9.1% in June, against a decline of 5.9% in June 2021. This is above the three-month average decline of 10.3%.

The non-food online penetration rate decreased from 43.3% in June 2021 to 39.4% this June.

Helen Dickinson, chief executive, British Retail Consortium, said: “Sales volumes are falling to a rate not seen since the depths of the pandemic, as inflation continues to bite, and households cut back spending.

“Discretionary purchases were hit hard, especially white goods and homeware, while consumers also traded down to cheaper brands in food and non-food alike. While the Jubilee weekend gave food sales a temporary boost, and fashion sales benefited from the summer holiday and wedding season, this was not enough to counter the substantial slowdown in consumer spending.”

She added: “Retailers are caught between significant rising costs in their supply chains and protecting their customers from price rises.

“The government needs to get creative and find ways to help relieve some of this cost pressure – the upcoming consultation on transitional relief is a golden opportunity to ensure that retailers aren’t overpaying on their business rates bills. Government action on transitional relief would make a meaningful difference to retailers’ costs and ease pressure on prices for customers.”

source https://www.jewelleryfocus.co.uk/205896-cost-of-living-crisis-starts-to-impact-sales-brc-finds