High St returns to growth, with housewares leading the way
Published: 7 November 2016 - Jenny Wonnacott
Following a rocky nine months, the UK's high street has finally started to grow again according to figures released by the BDO high street sales tracker - and sales of housewares were particularly buoyant.
October saw year-on-year growth of 0.7%, ending a run of monthly sales falls that began with a -1.7% fall in February. Sales of lifestyle goods grew by 2.3% in October, with housewares up 11.6%.
Non-store sales recovered to an increase of 19.5% after dropping to just 12.6% in September. Fashion sales still struggled in the unseasonably warm weather, with like-for-likes negative in three out of five weeks in October, struggling between a low of -5.2% to +2%.
The BDO is describing the return to growth as "a huge boost to stores as they head into the crucial Christmas period." With Black Friday (November 25) and Cyber Monday (November 28) just around the corner, many stores "would have been preparing to sacrifice margins in pursuit of sales volume." With consumer confidence boosted by low unemployment and encouraging figures from the post-referendum economy, "consumers have been spending with a freedom not seen since the January sales."
BDO LLP head of retail and wholesale Sophie Michael said: " Shoppers have reminded everyone of their resilience and this result provides a promising start to a crucial trading quarter. Prices will inevitably rise next year in the context of the falling pound, but right now people are remarkably upbeat about their finances.
“Retailers have a perfect window of opportunity to push full price lines for the next few weeks and claw back their margins prior to Black Friday. A strong product and service proposition will be critical for wooing shoppers while there is an appetite to spend.”