Thanks to children going back to school, needing new clothes and shops selling a considerable amount in the autumn sales, retailers have bounced back in the last month. The sunny weather has also had a lot to do with the bounce back, however groceries haven’t been so lucky due to the substantial discounts they offer according to the British Retail Consortium. Sales were up 1.3% compared to last year in August meaning that we have had the most radical growth since January. Forty six per cent of the retailers who were surveyed said that their sales were higher that 2013 whereas 25% said their sales were less.

In July a huge help for retailers has been the warm weather as sales of summer clothes and BBQ foods and accessories soared. The chair of the CBI’s distributive trade’s survey panel and the chief merchandising officer for food at Asda, Barry Williams said: “As the temperature began to rise, it seems so did sales volumes. Almost all sectors saw growth, with grocers and clothing stores telling us they performed particularly well as people bought barbeque supplies and summer outfits. Retailers expect an even faster rise in sales volumes next month, and are stocking up in anticipation of growing demand.” An increase in sales is great news not only for the economy but for shop owners themselves because it means the purse strings don’t need to be drawn so tight when it comes to overheads such as stock, wages and shop insurance.

The head of retail and wholesale at Barclays, Richard Lowe, added: “Consumers are still spending, with the intermittent bursts of sunshine helping to boost the fashion sector as Brits look to update their summer wardrobes. Retailers are bringing in extra stock in the hope that the good weather remains as it’s clearly putting a spring in shoppers’ steps.”

In August the increase in sales was thanks to the warm weather meaning more people were buying clothes and shoes. The BRC’s sales report said: “Retailers were blessed with a hot start of the month during their summer clearances, followed by a showery and cooler second half, making the new autumn ranges attractive and relevant as they arrived on display.”

Children’s ‘back to school’ sales also had a positive impact on sales and the same goes for the release of the Disney film Frozen as it boosted sales of fancy dress outfits which “proved extremely popular and sold out very quickly online” said the BRC. Furniture and homeware was also up there with some of the top selling products which reflects the boost in housing market activity.

However, this is now the fourth month in a row that food sales have fallen even though consumer spending hasn’t stopped elsewhere. Like-for-like sales for supermarkets have slipped 3.6 per cent over the last 3 months. Visa Europe released a report stating that spending in hotels, restaurants and bars had increased 9.2 per cent annually by the end of August however the sales of food and drink only went up 4 per cent.

David McCorquodale, KPMG head of retail, said: “The food sector remains in a state of disruption with the share of the ‘big four’ being challenged on many fronts after a 15-year reign. The like-for-like decline shows the battle is being fought via the prices on the shelves, but the war may be won by those grocers best able to adhere to brand values to retain customer loyalty. Overall, it has been a very successful summer for non-food retailers, placing them on a firm footing for the autumn/winter trading period and the run-up to Christmas. With autumn drawing in, the countdown to Christmas has now begun. This will be a true bellwether of consumer confidence.”

The food industry has had the hardest time and it is predicted that the same pattern will carry on for a while. The director general of the BRC, Helen Dickinson, said: “Consumers are still taking advantage of record low food inflation. The strength of the economy is not yet consistent across all areas of the country and shop prices fell in August.”

The next few months look somewhat uncertain for retailers; however they will all be looking forward to the Christmas period where sales should increase substantially.

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