Sunshine takes heat off retailers

Retail sales rose in June, largely thanks to the early summer heatwave, figures have shown.

Like-for-like sales rose 1.4% compared with June 2008, according to a survey by the British Retail Consortium (BRC) and the accountants KPMG.

Food sales were boosted by the good weather, with strong demand for barbecue items, ice cream and frozen desserts, the BRC said.

But big-ticket homewares and furniture sales remained difficult.

Higher demand for items like sandals and sunglasses, and early clearance sales in stores also contributed to the upturn in trade.

Director general of the BRC Stephen Robertson said: "June's sunshine gave overall sales a much-needed boost. The heatwave helped food retailers and got customers buying outdoor goods, such as garden furniture, pools and picnicware."

Hot off the shelves

"Given the uncertainty about jobs, customers are still nervous about spending on more expensive, non-essentials"

In June 2008, sales were hit by bad weather. But this year's sunshine saw more clothing, footwear and outdoor leisure items being bought. Womenswear outperformed menswear.

Like-for-like food sales in the three months to June were up 5.4% on the same period a year ago.

The heatwave also drove strong sales of fans, air conditioning and fridges but underlying trade was still subdued, as the weak housing market and squeeze on household budgets meant shoppers remained cautious.

Home accessories sales fell back below their June 2008 levels.

Sales of non-food items in the second quarter fell 0.7% on last year.

"Given the uncertainty about jobs, customers are still nervous about spending on more expensive, non-essentials," Mr Robertson said.

'Significant lift'

POPULAR ITEMS IN JUNE

• Sunglasses and sandals
• Hay fever remedies and tissues
• Michael Jackson CDs

Internet, mail order and phone sales were 16.8% higher. Some retailers noticed that on extremely hot days, many shoppers preferred to buy online rather than travel to the shops.

DVD and CD sales surged after the death of US pop star Michael Jackson, the BRC said.

Hay fever remedies also enjoyed a good month. Some stores noticed an upturn in tissues and anti-bacterial ranges linked to the spread of swine flu.

Helen Dickinson, head of retail for KPMG said: "The gap between total sales performance and like-for-like continues to narrow, highlighting the reductions in new store openings in the current environment. Two years of negative like-for-likes at store level for many retailers is putting severe pressure on cash and profits."

Howard Archer, chief economist at IHS Global Insight, said June's rise in sales gave a "significant lift" to hopes that the UK's economy has stopped contracting.

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British Retail Consortium
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