Retail sales boosted by hot weather

Retail sales boosted by hot weather

Retail sales boosted by hot weather

Retail sales in June were boosted by the warm weather, as consumers rushed out to buy ice cream, barbecue products and other fresh items related to the hot weather.

The latest figures from the British Retail Consortium (BRC) showed that retail sales in the month of June increased by 3% on a like-for-like basis. When this year’s figures are compared to June 2002’s, retail sales increased by 5.7% on a total basis.

The BRC highlighted that sales of clothing and footwear were the star performers in June, sun hats and sunglasses sold well and wine, and beer and Pimms ‘flew out of stores’ as people enjoyed the sunshine.

The BRC argued that whilst the better-than-expected retails sales were welcome, people should not become over-excited by one month’s figures. Bill Moyes, Director General of the BRC, warned that consumer confidence remains fragile and is only starting to improve.

Mr Moyes commented, ‘The warm weather boost has its limitations and consumers remain nervous about their long-term financial outlook. The cut in interest rates is welcome, but is only one factor in sustaining a higher level of sales growth. Peter Hain’s comments last week about the retail sector’s power to keep the UK economy growing should not be taken for granted over the coming months.’

The survey revealed that the slow down in the housing market has impacted on the sale of home products. The BRC also highlighted that stores in London have continued to see a decline in both international and domestic tourist visitors.

The Head of Retail at KPMG, Amanda Aldridge warned that this month’s strong performance should be considered against the weak June 2002 performance. She pointed out that retailers have had to discount heavily to entice customers to spend in their stores.

The survey stated that in spite of the geopolitical uncertainty dissipating and the SARS virus losing its grip, the global economy has continued to disappoint, and this would mean that consumer demand would be relied upon to provide economic growth.