Total retail sales in June were “flat”, increasing by 0.5%, with store sales up 0.6% while ecommerce sales jumped 4.3% – as consumers choose online shopping over visiting the high street during a heatwave.
BDO’s High Street Sales Tracker highlights that fashion was the best performing category this month – likely due to spending on summer clothing. But consumers appear to have chosen ecommerce over bricks-and-mortar stores. BDO stressed this underscores the struggle facing high street retailers when weighed against the convenience of next day delivery and easy one-click returns.
Much of the UK experienced an unusually warm and dry June, characterised by persistent high pressure and extended sunshine, particularly in the south and east. This contrasts with the same period last year, which was cooler, wetter, and cloudier.
It is unsurprising then that throughout June, retail parks saw strong growth, likely due to their appeal as open-air, drivable destinations, which may have drawn visitors away from locations more reliant on foot traffic or public transport. Footfall was down for most of the month, with the exception of the third week. In that week, a 3.0% rise in high street traffic led to an overall increase in footfall of 0.8%.
“This month’s result represents a muted return to growth. However, the result is well below inflation and highlights the widening divergence between bricks-and-mortar and ecommerce retail,” the report explained.
“The strength of store homewares sales and non-store fashion sales indicates that the warm weather drove much of this month’s activity.
“This month’s result highlights the agility of ecommerce retailers to take advantage of changing weather conditions. For bricks-and-mortar retailers, this underscores the need for intelligent strategic investment and agility in order to manage costs and attract consumers.”
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis.
