The tracker showed that growth remained below the rate of inflation, meaning sales volumes dropped for the sixth time this year. Looking across the last eight years of online and in-store sales, the August results were below the overall August average, excluding the COVID-19 period.
Discretionary retail sales tracked by BDO rose 2.2 per cent in August, below last year’s 3.9 per cent and the eight-year August average excluding COVID-19.
Growth stayed below inflation for a sixth month this year, implying lower sales volumes before the Golden Quarter.
High street footfall weakened in late August, adding caution for order-volume decisions ahead of Christmas.
Accountancy and business advisory firm BDO said August is traditionally a strong month for retail sales as back-to-school shopping and new autumn ranges support demand, but this year failed to deliver. The tracker recorded store sales growth of 3.6 per cent, compared with 5.2 per cent last August, while non-store sales increased 2.3 per cent, well below the 6.6 per cent recorded last year.
Separate footfall data cited by BDO showed minimal growth in August. High street visits were the biggest drag on growth, with footfall dropping during the second half of the month as record summer temperatures kept shoppers away from stores.
Sophie Michael, head of retail and wholesale at BDO said: “The record-breaking heat may have made headlines this summer, but it hasn’t led to a boost in consumer spending.”
Michael said the weather could not be the only explanation for another lacklustre month, as consumers remained reluctant to spend on non-essential items. She also said consumer confidence had reached a two-year high following the appointment of a new Prime Minister and reflecting the so-called ‘Burnham Bounce’, but warned this may be short-lived as energy bills are set to rise again in October and households face continued cost pressures.
BDO said retailers may already have made decisions about order volumes ahead of Christmas. After a disappointing Golden Quarter last year, Michael said continued geopolitical uncertainty and the potential impact on costs and supply chains could leave many retailers nervous about getting those decisions wrong. With the first Budget under the new Prime Minister and Chancellor due at the end of October, she said pressure is likely to grow on the government to provide targeted support for retailers as they brace for the most important trading period of the year.
Fibre2Fashion News Desk (KD)
