THE value of UK retail sales in May was up just 1.1 per cent on the same month of last year, with fashion proving a drag on the high street's performance, the latest industry figures have shown.
The British Retail Consortium (BRC), publishing the figures today, notes that the year-on-year growth in total sales value in May is behind respective averages of 1.8 per cent and 1.4 per cent for the last three and 12 months.
Edinburgh-based David McCorquodale, head of accountancy firm and BRC survey sponsor KPMG's UK retail sector practice, said: "With Easter distortions behind us, May's retail sales figures were disappointingly flat."
Industry figures for retail sales in Scotland in May will be published later this month. In recent times, the Scottish Retail Consortium's monthly figures have consistently shown the sector north of the Border underperforming that in the UK as a whole significantly in terms of year-on-year comparisons.
On a like-for-like basis, stripping out the beneficial impact of net expansion of space, the value of UK retail sales in May was flat compared with the same month of last year.
This like-for-like basis gives a measure of how retailers are faring. The total sales measure provides a better indication of overall retail spending by consumers.
Highlighting the drag on the overall performance of the UK retail sector in May from clothing sales, BRC director general Helen Dickinson said: "May witnessed a slowdown in sales growth, below the three-month and 12-month average. This was mainly due to fashion sales, which experienced a decline compared with the same month last year, where we saw record demand."
The BRC says: "Clothing reported its deepest decline since September, attributed by retailers to unsettled weather, dampening demand for their spring [and] summer lines. Less impacted by this, was shoppers' continued appetite for branded clothing, albeit promotion-led. Strong sportswear sales were indicative of the continued trend towards lifestyle-conscious shopping. Men's clothing was the best-performing segment, while women's and children's declined."
Mr McCorquodale highlighted continued tough trading for food retailers
The total value of UK food sales in the March to May period was up by 0.5 per cent on the same period of last year. This was a slight improvement on a 0.4 per cent year-on-year increase in the February to April period.
However, grocers'woes are writ large in a like-for-like comparison showing that the value of UK food sales in the March to May period was down by 1.4 per cent on a year earlier.
Mr McCorquodale said: "The slight improvement in the three-month average food sales reflects the grocers' relentless grind for growth, and encouragement can be drawn from that. However, as highlighted by the decline on a like-for-like basis, this recovery continues in the eye of a price deflation storm which continues to benefit the consumer."
The BRC figures show that furniture was the best-performing category in UK retail in May, achieving its strongest year-on-year growth since July last year, excluding distortions related to the timing of Easter.
The household appliances, home accessories, and house textiles categories were among others showing year-on-year growth in sales value in May.
Mr McCorquodale said: "Buoyed by a conclusive result in May's General Election, the housing market picked up, leading to stand-out performances for furniture and homeware sales. As economists predict another housing boom for the second half of 2015, these trends could be set to continue."
Looking ahead, he added: "June may be a tough month of comparables for some, with the start of the 2014 World Cup in June last year boosting sales in certain areas."
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