August sales reflect a damp end to summer ahead of the ‘Golden Quarter’
August sales reflect a damp end to summer ahead of the ‘Golden Quarter’
- Total sales across all categories grew just +2.2% in August, below August’s average across the last eight years, excluding the COVID-19 period
- High street footfall fell as record summer temperatures kept shoppers away from stores
- August marks the sixth month this year to record below inflation growth, meaning sales volumes have declined as retailers prepare to head into the Golden Quarter
Total sales across the discretionary retail categories grew by just +2.2% in August, compared to +3.9% in the same month last year, according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO. Growth remained below the rate of inflation, meaning sales volumes have dropped for the sixth time this year.
Looking back over the last eight years of online and in-store sales, these results fall below the overall average for August, excluding the COVID-19 period.
Whilst August is traditionally a strong month for retail sales as back-to-school shopping and new Autumn ranges help drive demand, this year failed to deliver. Store sales grew +3.6%, compared to +5.2% last August, while non-store sales increased +2.3%, significantly below the +6.6% recorded last year.
Separate footfall data saw minimal growth in August. High street visits were the biggest drag on growth, with footfall dropping during the second half of the month.
Sophie Michael, Head of Retail and Wholesale at BDO, commented: “The record-breaking heat may have made headlines this summer, but it hasn’t led to a boost in consumer spending.
“However, the weather can’t be the only thing to blame for yet another lacklustre month. Whilst August is traditionally a strong month for the sector, this disappointing set of figures points to deeper issues where consumers remain reluctant to spend on non-essential items.
“Despite consumer confidence reaching a two-year high following the appointment of a new Prime Minister and reflecting the so-called ‘Burnham Bounce’, this may be short-lived as energy bills are set to rise again in October and households face continued cost pressures.
“As we prepare to enter the so-called Golden Quarter, the most crucial time of year for the sector, retailers may have already made decisions about order volumes ahead of Christmas.
“After a disappointing Golden Quarter last year, with continued geopolitical uncertainty and the potential impact on costs and supply chains, many will understandably be nervous about getting those decisions wrong.
“With the first Budget under the new Prime Minister and Chancellor due at the end of October, 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.”
ENDS
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