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Industry News

Published on August 8th, 2017 | by The GC Team


Non-food sector undergoes sales slowdown

UK retail sales increased 0.9% on a like-for-like basis in July, against an increase of 1.1% during the same month in 2016.

Although growth appeared to be relatively strong, it was underpinned by food sales alone, while non-food sales fell into negative territory.

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, put the relapse in the non-food sector down to competition heating up due to a shrinking pool of discretionary consumer spending power.

Over the three months to July, non-food sales decreased by 0.7% on a like-for-like basis.

Growth in online sales of non-food products also slowed in July, up 8.3% compared to 11.2% a year earlier, with the three-month average growth, at 7.8%, falling below the 12-month average of 8.4%.

In-store sales declined 3.0% on a like-for-like basis during the three months to July.

Hugh Fletcher, Global Head of Consultancy and Innovation at Salmon, said: “Today’s figures from BRC offer mixed feelings for retailers as high street sales decreased yet spending online was seen to go up. The positive story for ecommerce demonstrates the changing nature of today’s increasingly digital consumer.

“Innovation and a focus towards a robust ecommerce strategy, combined with a strong offering in bricks and mortar stores, is the only way that retailers will be able to keep up alongside evolving customer traits that demand greater convenience and immediacy – retailers that don’t have this omnichannel offering will most likely see growth shunted and falling profits.”  

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