High Streets Initiative Carly Hacon · 7 September 2018
High street sees worst August sales for three years in 2018
It’s bad news for the British high street. New figues reveal the worst August performance for three years, in further evidence of the pressure on traditional retailers. As the abundance of online surges, shoppers are no longer traipsing out and going to physical stores. According to the latest data from the advisory firm BDO, which monitors mid-sized, non-food chain, stores sales slid 2.7% last month, compared with August 2017, with homewares and fashion taking the biggest hit. Commenting on this, Sophie Michael, BDO’s head of retail and wholesale said: With inflation continuing to bite on the weekly shop and the heatwave driving discretionary spending to bars and entertaining, there is even less disposable income heading to the high street.” Rising interest rates and subdued wage growth meant there was little spare money to spend on fashion or expensive homewares, contributing to declines in underlying sales of 3.6% and 6.1% for those sectors respectively. August was the seventh month in a row for sales to drop, according to BDO, with no boost from an apparent trend towards staycations. But this doesn’t mean people aren’t spending, as there has been a£13.7% rise in online sales in August (BDO). This news will send shivers down town centres spines, which have already been hit by a wave of retail closures this year. Michael said there were signs that retailers had protected their profit margins by keeping stocks tight. However, the troubles of major chains, including House of Fraser and Debenhams, have spawned discounting across the market.
ABOUT THE EXPERTCarly Hacon
Carly Hacon is a reporter for Business Advice. She has a BA in journalism from Kingston University, and has previously worked as a features editor for a local newspaper.