14 Jun 2018
This morning’s May 2018 retail sales revealed significant growth compared to April 2018, following several months of anaemic increases, thanks, in part, to better weather and the Royal Wedding.
However, retailers need to do more to maintain that growth if they are to survive in these changing times.
The key findings from the Retail Statistics showed:
Phil Mullis, Partner and Head of Retail and Wholesale at top-20 UK accountancy firm, Wilkins Kennedy, said: “It was pleasing to see a good amount of growth in the retail sector, thanks in part to the royal wedding and an improvement in the British weather. However, this is not a sustainable way to maintain growth and more needs to be done to make sure retailers are keeping up with the fundamental change that is going on in the industry.
“It’s particularly interesting that online retailing continues to grow, but that is hardly surprising given that footfall overall is decreasing. The times are changing in the retail sector and many are already adopting their strategies to encompass less high street stores to focus on a stronger online offering. We only need to look at the headlines to see retailers such as New Look, House of Fraser and M&S cutting back on their store estate. Other brands, such as Ted Baker, continue to thrive as they have the right amount of stores to cater for footfall, yet also heavily target their online shoppers. Those retailers who adopt a unified retail strategy, with customers at the core of their proposition, will be those who should thrive.
“Looking forward to June, let’s hope the good weather continues and that the World Cup and a positive England performance brings improved consumer confidence and some further growth in the sales figures."