Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Retailers suffer worst sales slump since lockdown

Published 04/03/2024, 12:28
Updated 04/03/2024, 12:40
Retailers suffer worst sales slump since lockdown

Proactive Investors - UK retailers have experienced the longest slump in sales since the pandemic after consumers cut back on spending for a fifth consecutive month in February.

Total industry sales fell by 1.3% last month, compared to February 2023’s jump of 6.4%, retail data from accountancy firm BDO found.

High street sales experienced a 2% drop, counteracting a 2.9% surge in online business, with colder, more inclement and the school half term having reduced footfall throughout most of the month.

Fashion sales dropped for the 22nd week in just under half a year, falling by 4.8%, while homeware revenues dropped by 4.1%.

Lifestyle was the only category to see sales rise, lifting by 3.9%, with celebrations like Valentine’s Day helping both in-store and online revenues increase year-on-year.

“This run of negative like-for-like sales covers both the build-up to Christmas, which retailers would expect to be their busiest and most profitable period, and the stock clearance period in the new year sales,” said Sophie Michael, head of retail and wholesale at BDO.

Despite inflation having reduced significantly since the start of 2023, the BDO remains cautious that prices are still far above those from two years ago and is therefore still putting pressure on households.

News of the UK entering a recession is also expected to affect spending and supply chain issues hurting costs will put additional pressure on retailers as they head into Spring.

Michael said: “Retailers will increasingly be challenging themselves and asking whether certain stores are viable, or if the costs of running their existing physical footprint are simply too high.

“We should expect to see more consolidation of brands and acquisitions over the next six months as a result.”

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.